Categories
Update

Bank of Nova Scotia (TSX, NYSE: BNS)

Scotiabank is the most internationally oriented of the Big Six Canadian chartered banks, with approximately 35% of its earnings coming from its international operations, primarily from Mexico, Colombia, Peru, and Chile.


Wealth Builder

Sorry!

Only current subscribers of the Internet Wealth Builder may view the details of this recommendation.


Income Investor

Scotia was the worst-performing of the Big Six banks until TD’s recent fall from grace. This was due to Scotiabank’s exposure to what investors regarded as higher-risk areas, including Latin America, the Caribbean, and Asia. Scotiabank has taken substantial writedowns in recent years in the latter two areas, most recently $379 million on its holding in the Bank of Xian in China in the latest quarter. While Scotia did not increase its dividend at all in the last year, it still has the second-highest yield among the banks at 5.4%, while there is the possibility of further moves in North America, as Mr. Thomson has mentioned his interest in expanding in Quebec. Buy now for reasonable earnings growth, a high and sustainable yield, and a continued rerating after years of underperformance. - Gavin Graham

Sorry!

Only current subscribers of The Income Investor may view the details of this recommendation.


Interactive Performance Chart

BNS was first recommended here on August 29, 2007