Growing expenses weighing down on bank earnings, says analyst

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In an interview with BNN Bloomberg, Harris said that Canadian bank stocks are currently trading at discounted levels, and investors can expect significant returns in the long term should they choose to hold onto these stocks.

“You own them here, not sell them here,” Harris said. “Over the next couple years they are going to generate a great return, especially if the interest rate market changes.”

What bank is poised for future strength?

Harris said that taking these trends into account, TD Bank is especially well placed to see gains in the near- and mid-term despite moderately missing estimates in Q3.

“[TD] certainly have the ability to buy other assets because of their capital base, which allows them to maybe grow their business a lot more than other Canadian banks,” Harris said.

TD chief financial officer Kelvin Tran assured that its approach to capital deployment remains consistent, with a focus on balancing acquisitions, organic growth, and shareholder payouts.

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