Trimming National Bank Position
National Bank (NA.TO) is a Quebec based chartered bank. The Bank operates in three segments: Personal and Commercial, Wealth Management and Financial Markets. National Bank offers an array of banking services, including retail, corporate and investment banking. The Bank is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management. [PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'NA.TO'" symbolprices="45" div_align="right"]
We had bought the NA at $44.00 in summer 2015. We are exiting our position with a small profit because the earnings outlook for this Canadian bank has deteriorated over the last 3 months.
In addition, NA’s latest earnings report was worse than expected and we expect further weakness in the coming quarters as oil related loan loss provisions increase. We believe that there will be opportunities to buy this bank at better levels.
EXITING NATIONAL BANK AT $45.23 (NA-T) HALF POSITION
TOTAL RETURN (including dividends): +8.5%
