Q: Of the 5 major banks, which one (or 2) do you think has the best potential for growth over a 10 year time frame? And if possible, a few comments why. Thanks
5i Research Answer:
Among the large banks, we think BNS and TD are good options for investors who look for decent growth prospect at reasonable valuations. They may not be the banks that will grow the fastest but given the valuations (trading at a discount to peers) and fundamentals (decent ROEs and growth over the years), we think BNS and TD would offer the most attractive total returns from the current levels. Note we have been wrong on BNS for some time, so far, but it is very cheap and any good news could see an amplified positive impact.