Bank of Nova Scotia (BNS.TO)

Really likes. Add here. Banks have been hit by weakening economic outlook plus US bank turmoil. Banking sector and valuations are down in the dumps. Very strong capital levels. Unique EM footprint. Motivated management. Trades at less than 8x. Yield above 6%.

Loan loss provisions a good aspect of bank (conservative orientation).
Favors other names in the sector.
Overall, company presenting a good share price to invest in.
Long term, is a good investment.
$70 price target.
Buy on weakness.

Banks are largely basing. For now, they're trades. Don't predict, just ask "What's it doing?" It's going sideways. You could buy around $65, sell at $70, and wash/rinse/repeat. When it breaks out, whole lot of upside. See his Top Picks.

EPS of $1.7 missed estimates of $1.78 and revenues of $7.93B missed estimates of $8.04B. Net income dropped from $2.7B in the prior year to $2.2B, but it made progress by building its liquidity position with double-digit year-over-year customer deposit growth. Its Canadian banking and International banking segments were impacted by normalization for credit losses and higher provision for credit losses, while its global wealth management segment saw challenging market conditions impacting its fee income growth. An increase in its provision for credit losses is a key driver in its declining profitability, which is due to a less favorable macro outlook and a challenging market in Chile and Colombia from higher inflation. Similar to the impacts from 2020, we feel that the eventual reversal of these higher provisions for credit losses will benefit BNS later, but for the time being its earnings are being impacted by a more challenging economic outlook. BNS continues to pay a strong yield of ~6.0%, and its valuation is quite reasonable at an 8.7X forward earnings. We would be quite comfortable with owning BNS here. 
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The outlook and earnings have declined but it has a 6% dividend yield. It doesn't have the level of capital compared to the other Canadian banks. He still owns it but is reducing his holdings to buy others.

Unique because 40% of revenue comes from Central and South America. Softness in markets has presented a buying opportunity. New CEO has mandate to restore growth. Not looking for new highs immediately, just wants it to reflate to previous levels. Yield is 6.20%.

Historically, BNS used to trade at a premium, but their international operations haven't worked as well and the old CEO left. They're starting to sell some assets, but that's also losing earning streams. Are investing in wealth management through acquisitions to catch up to peers. Maybe paid too much. Holding on, because their PE is the lowest in this group and willing to see what the new CEO does. The 6% dividend is among the highest in this group and safe.

New CEO will hopefully continue to execute on business strength. 
Return on equity from emerging markets a concern.
Current share price presenting a fair price to buy.
Prefers BNS over CIBC.

All banks have been hit in the recent environment. Canadian banks are fairly well capitalized. A compelling 1.2x book. Longer term, room for a lot of capital appreciation. New management doing strategic review of capital allocation priorities, an opportunity to increase profitability. Yield is 6.2%.

It lags the Big 6 banks. They have a new CEO. They're refocusing their Latin American operations. Pays an attractive yield, but faces rising rates, therefore interest margins are not expanding. They're well capitalized. Dividend is safe. Latin America offers growth long term, but rocky short term.

His target is down to $57.30, literalling hanging now and testing that level three times in the last 6 months. 

Really likes Mexico and Argentina. ETFs covering those countries are breaking out to new highs, which is really bullish. Should benefit from exposure to those countries. Laggard, moving in a sideways trading range. Strong dividend yield. Doesn't mind adding exposure, it's putting in a bottom and a base.

A bit like chalk and cheese. CM is the most domestic and Canadian bank. BNS is the most international, especially in Latin America. BNS has more risk because of all that could go wrong in developing countries. CM has more risk because it rarely has found a log that it couldn't trip itself over. Invest with the one that you bank with. It will at least be emotionally satisfying, as your bank charges will be covered by dividends, which will increase regardless.

Value pick at current share price.
Oligopoly in banking system within Canada.
New management a bit of a worry, but has met new CEO before and believes in him.
~5% dividend yield is very strong. Expected to grow.
Strong long term term hold.