The Bank Of Nova Scotia Appears Undervalued With Solid Growth Catalysts
Caiman Valores • 27 Comments
Caiman Valores • 27 Comments
Dec. 1, 2015, 6:11 AM
- Bank of Nova Scotia (NYSE:BNS): FQ4 EPS of C$1.46 beats by C$0.03.
- Revenue of C$6.13B (+6.6% Y/Y) misses by C$110M.
Nov. 30, 2015, 5:30 PM
Nov. 10, 2015, 2:48 PM
- The order from the Federal Reserve and the New York Department of Financial Services offers no detail on wrongdoing, but gives the bank 60 days to submit a plan for addressing issues.
- “We have engaged a third-party firm to provide best practices and ensure that these changes happen as quickly as possible," BNS spokesman Andrew Chornenky tells Bloomberg.
- It's the latest November surprise for the "Bank of No Surprises," which last week was put on review for a downgrade by Moody's thanks to the risk entailed with an expansion into credit cards, auto loans, and growth abroad.
Aug. 28, 2015, 6:17 AM
- Bank of Nova Scotia (NYSE:BNS) declares C$0.70/share quarterly dividend, 2.9% increase from prior dividend of $0.68.
- Forward yield 4.67%
- Payable Oct. 28; for shareholders of record Oct. 6; ex-div Oct. 2.
Aug. 28, 2015, 6:03 AM
- Bank of Nova Scotia (NYSE:BNS): FQ3 EPS of C$1.45 in-line.
- Revenue of C$5.94B (-8.5% Y/Y) misses by C$220M.
Aug. 27, 2015, 5:30 PM
Jul. 27, 2015, 3:51 PM
- Stocks in Toronto are off 1.45% just ahead of the bell, their 7th-consecutive day of losses. Energy and raw materials producers are among the leading decliners as the Bloomberg Commodity Index falls yet again, hitting a 13-year low.
- Also getting socked are the banks, led by Scotiabank's (NYSE:BNS) 2.4% drop and TD Bank's (NYSE:TD) 1.9% fall.
- The loonie (NYSEARCA:FXC) is flat, and its lowest level since the height of the global financial panic in early 2009.
- ETFs: EWC, CNDA, EWCS, QCAN, FCAN, HEWC
Jul. 14, 2015, 10:16 AM
- The deal is in line with Scotiabank's (NYSE:BNS) strategy to boost scale within its footprint, and in line with Citi's (NYSE:C) strategy to scale back its reach.
- The acquisition, says Scotiabank, will nearly triple its customer base in the two countries to 387K from 137K.
- Scotiabank has been in Panama since 1974, and its operation there has $2.7B in assets, 16 branches, and 22 ABMs. It's been in Costa Rica since 1995 and has $2.65B in assets, 35 branches, and 153 ABMs.
- Citi's operations in the two countries include 27 branches. The bank will continue to do business there with a focus on corporate and institutional banking an wealth management.
May 29, 2015, 2:25 PM
- The last of Canada's big six lenders to report FQ2 results, Bank of Nova Scotia (BNS +1.2%) beat estimates (as did the others), helped by strong action in capital markets. The bank also announced a 24M share buyback.
- “These results were on balance better than I would have expected a few weeks ago, however they’re not strong enough to really serve as much of a catalyst for the stocks,” says Edward Jones' Jim Shanahan. "The stocks are trading cheaper, but given a weaker loan growth outlook and weaker return profiles, that’s probably warranted.”
- RBC Capital is impressed enough with Scotiabank's results to upgrade to Outperform from Sector Perform.
- Checking the scorecard this week: BNS is up 1.2%, while CIBC (NYSE:CM) is down 1.8%, Royal Bank of Canada (NYSE:RY) is down 2.7%, Bank of Montreal (NYSE:BMO) down 3.9%, and TD Bank (NYSE:TD) 4.3%.
- YTD, Scotiabank also leads with just a marginal decline, while the other four lenders are down anywhere from about 8%-13%.
May 29, 2015, 7:12 AM
- FQ2 net income of $1.797B or $1.42 per share vs. $1.8B and $1.39 one year ago. ROE of 15.1% down 120 basis points.
- Canadian Banking adjusted net income up 9% Y/Y. International Banking net income down 1%, with strong loan growth offset by margin compression. Global Banking & Markets net income up 3%, driven by positive forex translation and strong results in capital markets and Canadian lending.
- CET1 ratio of 10.6% up 30 bps for the quarter.
- Quarterly dividend is maintained at $0.68 per share, and a buyback of 24M shares - roughly 2% of the float - is approved.
- Conference call at 8 ET
- Previously: Bank of Nova Scotia beats by C$0.01, revenue in-line (May 29)
- BNS flat premarket
May 29, 2015, 7:09 AM
- Bank of Nova Scotia (NYSE:BNS) declares C$0.68/share quarterly dividend, in line with previous.
- Forward yield 4.21%
- Payable July 29; for shareholders of record July 7; ex-div July 3.
May 29, 2015, 6:03 AM
- Bank of Nova Scotia (NYSE:BNS): Q2 EPS of C$1.42 beats by C$0.01.
- Revenue of C$5.94B (+3.8% Y/Y) in-line.
May 28, 2015, 5:30 PM
May 22, 2015, 4:00 PM
- Citigroup's (NYSE:C) consumer-banking units in Costa Rica and Panama could go for about $1.1B, according to a Bloomberg source.
- A sale - and Scotiabank (NYSE:BNS) is still conducting due diligence - would be the second such deal between the two lenders in six months. Scotiabank agreed in December to buy Citi's Peru operations (it closed this month).
- Citi and Spain's Banco Popular earlier this year broke off talks for a sale of all of Citi's Central American retail businesses.
- Scotiabank operates in more than 55 countries in LatAm, the Caribbean, and Asia, and has targeted spots like Mexico, Colombia, Chile, and Peru as those offering the best opportunities for growth.
- Source: Bloomberg
Apr. 21, 2015, 1:19 PM
- Bank of Montreal (NYSE:BMO), CIBC (NYSE:CM), Scotiabank (NYSE:BNS), RBC (NYSE:RY), and TD Bank (NYSE:TD) all sold options to U.S. shale drillers looking to hedge against lower prices back when oil was above $90 per barrel. Now they're on the hook for at least $478M, according to Bloomberg.
- National Bank analyst Peter Routledge says it's a sizable liability, but given the heavy regulation of Canadian lenders, it's a pretty good bet they hedged their exposure. If you want to worry about Canadian banks as regards to oil. says Routledge, it's on the lending side, not the capital markets side.
- “We actively hedge and manage our exposures to fluctuations in commodity prices,” says BMO's Anthony DeMartino, head of commodity trading.
Apr. 9, 2015, 3:44 PM
- Scotiabank (BNS +0.5%) CEO Brian Porter just wrapped up an "exploratory trip" to the country, and the bank already has a representative office in Havana whose main focus is currently on trade finance for deals involving agricultural products and medical supplies.
- "We'd like to expand beyond that," says Porter, speaking after the bank's annual meeting. "So, could we open a branch? We’re exploring that possibility ... We were a significant presence, so that could all happen again." The bank, of course, already has a significant presence in the Caribbean.
- Source: WSJ
- Previously: Citi eyeing return to Cuba (April 9)
The Bank of Nova Scotia operates as a diversified financial services institution that provides a wide range of financial products and services to retail, commercial and corporate customers. Its businesses are grouped into four segments: Canadian Banking; International Banking; Global Wealth &... More
Industry: Money Center Banks