NTIOF - National Bank Of Canada: A Slowdown In Its Business Is Likely Inevitable
Investment Thesis
National Bank of Canada (NTIOF) (TSX:NA) posted a solid Q3 F2019 earnings with strong top and bottom lines growth. Looking forward, the bank may face the challenge of net interest margin compression. In addition, Quebec, its major market, may see a slight deceleration in its economy. Therefore, we expect National Bank of Canada’s top and bottom lines growth to decelerate in F2020. The company currently offers a growing 4.2%-yielding dividend. However, its shares are currently fairly valued. We believe investors may want to wait for a pullback before initiating a position.