Comparing the Performance of Canadian Bank Stocks

The Canadian banking industry is highly concentrated with six major banks dominating the market. After surviving the Global Financial Cisis(GFC) relatively unscathed the banks were performing well until the commodity boom ended. The stocks of these banks declined some but did not collapse. With the recent recovery in commodities especially in the price of crude oil …

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Which Canadian Companies Are In The Fortune Global 500 List?

Fortune magazine recently published its famous Fortune Global 500 ranking for 2016. As usual US-based companies dominate the list. Of the thousands of Canadian companies only 12 made it to the list. The companies are selected based on revenues. In terms of size, the top ranked Canadian firm in the list is George Weston with …

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A Review of S&P/TSX Equal Weight Diversified Banks Index

Canadian bank stocks are excellent investment option for long-term investing looking for steady dividend income and price appreciation. Among the top-five banks that dominate the market. most have good exposure to the US market. For instance, Canadian Imperial Bank of Commerce (CM) last week bought Chicago-based PrivateBancorp, Inc. (PVTB) to expand its footprint. Instead of investing individually …

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The FP500: Canada’s Most Profitable Companies

FP magazine recently published its ranking of top 500 Canadian companies based on revenue. The #1 rank went to George Weston Ltd. with 2015 revenues of over $46 billion followed by Royal Bank of Canada(RY) and auto parts maker Magna International Inc (MGA). The following graphic shows the top five most profitable companies and other lists: Click …

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Canada: Households’ Savings Rate and Indebtedness Ratio

The Canadian Household Savings Ratio stood at 8.1% in Q4, 2015 according to a new report by the OECD. Currently the US personal savings rate stands at 5.4%. The savings rate in Canada tend to be traditionally higher than in the U.S. Click to enlarge However Canadian household’s debt is also growing at an alarming rate. …

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The Leverage Ratio of Canadian Banks Has Declined

The leverage ratio measures the ability of a bank to absorb losses. This ratio is important because soundness of a bank is put to test during a financial crisis and strong banks usually tend to weather storms than weak banks. During the 2008-09 crisis, many small banks in the US failed due to this factor. From …

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