Scotiabank: A Safe Bet For The Future

Daniel Petersen
520 Followers

Summary

  • Canadian banks are among the safest, which the fundamentals of Scotiabank confirm.
  • Return on equity averages ~12%, which is good, as the company is currently only slightly above book value.
  • Investors can conservatively expect low double-digit intrinsic growth going forward.

Scotiabank head office in Toronto.

JHVEPhoto

Introduction

Canadian banks have long been perceived as stable businesses, where little volatility was to be expected. This was well demonstrated during the financial crisis of 2008, when Canadian banks experienced only a small decline in earnings, quickly followed by a recovery. They

This article was written by

520 Followers
Just sharing my thoughts. I love analysing companies and thought I would share my thoughts. Be sure to leave constructive feedback if you have any. Trust in your analysis and remember that value is often found when going against the crowd.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BNS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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