Teal Linde Bank of Nova Scotia BNS-T Unspecified Mar 17, 2025

Likes it. Their exposure in Latin America offers exposure to copper and other minerals. Management is shifting focus from Latin America to outside that area. He sees success here, and the stock is priced well now. The yield is generous and safe. This could be a core holding.

Like other Canadian banks it is undergoing re-positioning itself for a turn-around. It has dialed back its overseas business and is now focused on Canada, the U.S. and Mexico. The Canada and U.S space is pretty crowded. It has acquired a struggling regional bank in the U.S.

EPS of $1.52 missed estimates of $1.56; revenue of $9.08B was marginally better than estimates. Scotiabank's transition is advancing, driving overall adjusted operating leverage and international segment efficiency improvement, aided by progress toward C$800 million in cost savings this year and primacy expansion. The bank may reach 5-7% 2025 EPS growth. Trade risks still weigh on domestic and Latin America economies, reflected in a higher-performing provisions ratio. Slower activity in domestic banking might extend as clients face uncertainty. Canadian net interest margin eased. Wealth growth is exposed to market volatility, while Capital Market's M&A fees could ease, despite a healthy pipeline. The bank expects 2H impaired provisions at or over 2Q's 57 bps, above prior guidance and expected 2H moderation. Performing reserves in 2Q may help. Scotiabank is set to buy back 20 million shares. All-in, we would be comfortable here. The bank is managing a difficult and uncertain time fairly well so far. 
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Underperformed this year relative to peers. In transition, and that will take a while to sort things out. Slowly selling off international assets. Trying to increase presence in US, a bit late to the game. Path forward is somewhat uncertain. Highest yield, so you'll be fine if you have a long horizon.

She's actually a bit nervous on all the banks.

This is the one of the group that looks really interesting to him. Its US acquisition didn't look too good right off the bad, but could end up being pretty good. Has already taken the worst hits on Latin exposure. If you were to add one Canadian bank, this would be at the top of the list.

He owns it in the income growth fund for the longer term. It is the highest yielding of the big banks. It is a turn-around play with the new CEO and now has a stronger focus. There has been a strong recovery for all banks since the spring.

Using profits from TD to buy this one. Pretty confident in its turnaround potential. New CEO created doubt because he wasn't a banker, but he's great and doing a wonderful job. Highest yield at 6%, increased recently.

Prefers Canadian banks for their dividends. For instance, BNS is undervalued and pays a high dividend and trades at a low PE. There's room for the PE to expand. People buy foreign banks for the dividend, but you have to pay a withholding tax.

Please see the previous response to Royal Bank for general banking comments. BNS is more internationally focused than the other banks and has a Latin America focus which is increasing from a an economic standpoint. It has a good yield and will do well long term along with other banks.