2 Quebec Banks to Buy Before Earnings

Canada’s top banks are set to release their second batch of 2022 quarterly results in the days ahead.
Today, I want to look at two Quebec-based bank stocks that are trading in attractive value territory at
the time of this writing.

Laurentian Bank (TSX:LB) is a Montreal-based regional bank stock that has also branched outside of its
home province of Quebec. Shares of this bank stock have dropped 8% in 2022 as of mid-afternoon
trading on May 24. The stock is down 11% year over year.

Investors can expect to see Laurentian’s second quarter 2022 earnings on June 1. In Q1 2022, the bank
reported adjusted net income growth of 25% to $59.5 million. Meanwhile, adjusted diluted earnings per
share jumped 22% to $1.26. This bank stock is trading in favourable value territory compared to its
industry peers. Moreover, it offers a quarterly dividend of $0.44 per share. That represents a solid 4.6%
yield.

National Bank (TSX:NA) is the smallest of the Big Six Canadian bank stocks. It is also based in Quebec,
where it is one of the largest financial institutions compared to its smaller presence in the rest of the
country. This bank stock has dropped 5.4% so far in 2022.

The bank is set to release its second quarter 2022 earnings on May 27. In Q1 2022, National Bank
delivered net income growth of 22% to $932 million. Shares of National Bank possess an attractive P/E
ratio of 9.9. It offers a quarterly dividend of $0.87 per share, which represents a 3.7% yield.