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Why is National Bank so Cheap?

Great Canadian exposure with less of the overpriced housing.

Andrew Willis 13 May, 2022 | 4:28AM
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Andrew Willis: National Bank (NA) is the smallest of the Big Six banks in Canada - which could be a strength in today’s economic environment.

With a concentrated branch network, primarily in Québec, the bank is the least exposed to less-favourable international markets that can suffer in times of inflation. And within Canada, according to senior equity analyst Eric Compton, the smaller footprint comes with less of the hot housing markets in Toronto and Vancouver.

Another distinction for National Bank is the launch of zero-commission trading to increase its client base. Something for investors to consider, even if they don’t want to buy the stock.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
National Bank of Canada87.96 CAD1.59Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @AndrewWillisCDN.

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