BNN - Friday, May 24, 2024 - 01:00 p.m. (ET) - Segment #3

2 billion, then we're right on that, that t that's made up half of that capital. And then if you look at the remaining buyback program, you can buy back and additional 32 million shares. That's another to doing so. The texas capitol, a td bank has that could go away pretty pretty quickly after completes its buyback program after we have the monetary policy and then it's no different your bank and the space operating at a ratio of capital around 12 and a half to 13%. So the the buybacks, you know, that's a one to 2% benefit a reduction in shares outstanding, but it's not enough to outweigh the long-term headwind from a cease and desist order by the regulator in the U.S. especially if there's opportunities for organic for market share against he can participate. So that really that really is going to the U.S. franchise to at least 3 to 5 years. So the organic growth issue is, is is a concern. I guess I'm trying to understand, you know, royals. >> Moving towards highs, nationals moving towards highs. Jp morgan's moving towards all-time bank of america. So all bank stocks, you know, notwithstanding your comment about maybe that outlook as a little cloud, but they're all doing just fine. >> Operationally td seems to be doing just fine. This penalty just seems so on the company where we know from mount she perspective, they'll be able to handle it won't be pleasant, they'll be able to handle it. And the rest of the business is doing just fine. >> So I think that's an important point. We need to deconstruct to why the results for good this quarter and the upside surprise was driven almost entirely by their capital markets business and their wealth management business. So that's a function of very accommodative in support of financial market conditions that could change. We don't know. We can't predict that, but that's not a reliable recurring stream their core earnings. And the market may not necessarily the board banks that earning expectations purely on capital markets and wealth management, especially when the underlying trends for personal commercial banking are favourable at the moment where you have net interest margin contraction and credit losses continue to move higher. So if we go through next week and we have beats, which are more likely now given to these results based on capital markets on better. But the canadian or international banking franchise are doing fair and poor. His margins are can tighten. Bank wasn't good. >> All the margins with an expanded. So isn't like it could have a good quarter, but the outlook for margins td expects margin contraction now canada. Okay, so what is outside of the mlse is what is tell you about what we're likely to see it from the rest of the canadian banks. It sounds like good capital markets that margin expansion is is sort of an outstanding question, might be bank specific. So I think if the strong results for capital markets and wealth management carries over to the rest of the banks to going to see more likely than not beats. >> Next week, unless we get a one-off surprises either. Higher credit loss than expected other items that are more difficult to predict. The bigger issue is that if all banks also reflect the transfer td, which is marching attraction U.S. banking and limited or no margin expansion the banking and credit losses. Or can you continue move higher? You may not see a positive reaction by the market because going to look ahead to weakness unnecessarily bank on financial market conditions remaining you have a seller reduce all the canadian banks except one canadian western bank. What do you like? >> Its discount it pretty substantially stream below book value and the different species can you western bank and other banks are just kind of like a scotia rtd is there aren't bank specific risks for key western bank. >> Like a transition to a new ceo or a new strategic plan or mla regulatory issues. So what's cwb historically, they've done better on credit losses to cycle. Typically stable interest margin, so they should be able to perform fairly well as we move through this and it's is one of the only banks in the space that I tnk is trading at a significant discount without a specific identifiable risk that would justify the discount. All right, thank you so much for joining us with this insight. Nigel's nigel d'souza joining us from their task. >> We're going to take a quick break when we come back. Hot picks in cannabis might surprise you to learn that a lot of these cannabis named, particularly in the U.S. have been outperforming recently. 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