Bank of Nova Scotia

BNS-T

TSE:BNS

56.90
0.73 (1.30%)
The Bank of Nova Scotia, operating as Scotiabank, is a Canadian multinational bank. It is the third largest bank in Canada by deposits and market capitalization.
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Analysis and Opinions about BNS-T

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
July 29, 2020

They have less diversification compared to TD Bank, but he is not too worried on credit losses. Their dividend is sustainable and the capital ratio is alright. He would be accumulating around these levels.

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They have less diversification compared to TD Bank, but he is not too worried on credit losses. Their dividend is sustainable and the capital ratio is alright. He would be accumulating around these levels.

COMMENT
COMMENT
July 21, 2020
Trades near 10x PE. But BNS suffers because they have assets in emerging markets, namely South America, where economies will struggle for the next while. That said, BNS understands international banking like no other Canadian bank. Expect volatility in BNS and Canadian banks in general will take on more loan losses. In terms of tech, BNS is catching up to its peers now.
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Trades near 10x PE. But BNS suffers because they have assets in emerging markets, namely South America, where economies will struggle for the next while. That said, BNS understands international banking like no other Canadian bank. Expect volatility in BNS and Canadian banks in general will take on more loan losses. In terms of tech, BNS is catching up to its peers now.
BUY
BUY
July 14, 2020

He likes the Canadian banks long term. They pay consistent dividends and enjoy an oligopoly, which has created great returns over time. Loan losses will be ugly for the next quarters. He ranks TD first, then BNS. BNS has more exposure in oil and gas, but that's already priced in. Their Latin American operations will work out in time. He's not worried about a housing crash in Canada. Very low rates will remain a tailwind; when rates rise, he will be cautious.

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He likes the Canadian banks long term. They pay consistent dividends and enjoy an oligopoly, which has created great returns over time. Loan losses will be ugly for the next quarters. He ranks TD first, then BNS. BNS has more exposure in oil and gas, but that's already priced in. Their Latin American operations will work out in time. He's not worried about a housing crash in Canada. Very low rates will remain a tailwind; when rates rise, he will be cautious.

BUY
BUY
July 8, 2020

Canadian bank for dividends? For a 10-15 year time horizon, the Canadian banks are a pocket of value. They are trading less than 10 times forward earnings, which already include loan loss provisions. They have high asset qualities. Buying here is a winning formula for the long term. The dividend will pay you to wait for the market to return to normal post-pandemic. TD, RY and BNS happen to be the ones he favors for his clients. They have exposure to international markets. BNS has the best valuation and the dividend yield is better than its peers.

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Canadian bank for dividends? For a 10-15 year time horizon, the Canadian banks are a pocket of value. They are trading less than 10 times forward earnings, which already include loan loss provisions. They have high asset qualities. Buying here is a winning formula for the long term. The dividend will pay you to wait for the market to return to normal post-pandemic. TD, RY and BNS happen to be the ones he favors for his clients. They have exposure to international markets. BNS has the best valuation and the dividend yield is better than its peers.

PAST TOP PICK
PAST TOP PICK
July 8, 2020
(A Top Pick Jul 25/19, Down 18%) The asset quality is there and quality is strong. Over time this will produce good income. Loan loss provisions have gone up and he thinks BNS will weather the storm. Don't sell this now. A good time to buy. You get paid to wait for the economy to improve with the strong dividend.
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(A Top Pick Jul 25/19, Down 18%) The asset quality is there and quality is strong. Over time this will produce good income. Loan loss provisions have gone up and he thinks BNS will weather the storm. Don't sell this now. A good time to buy. You get paid to wait for the economy to improve with the strong dividend.
BUY WEAKNESS
BUY WEAKNESS
June 12, 2020
7.2% yield? He is not sure there is ever a period that Canadian banks are not a good investment over a 10 year period. The dividends have never been cut by the big chartered banks. You could buy on weakness and the dividends will be quite safe. NOTE: He works for Scotiabank, but the comments are general for all the Canadian chartered banks.
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7.2% yield? He is not sure there is ever a period that Canadian banks are not a good investment over a 10 year period. The dividends have never been cut by the big chartered banks. You could buy on weakness and the dividends will be quite safe. NOTE: He works for Scotiabank, but the comments are general for all the Canadian chartered banks.
BUY
BUY
June 11, 2020
It is a core part of his portfolio along with two other banks. It will be feeling the recession this year. There will be a huge uptick in provisions for loan losses. But this one is reasonably reserved for any credit losses. They have a sizable provision. They have lots of capital and the shares are attractively priced. The dividends are attractive. There is a paid-to-wait prospect. It is a good entry point.
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It is a core part of his portfolio along with two other banks. It will be feeling the recession this year. There will be a huge uptick in provisions for loan losses. But this one is reasonably reserved for any credit losses. They have a sizable provision. They have lots of capital and the shares are attractively priced. The dividends are attractive. There is a paid-to-wait prospect. It is a good entry point.
PAST TOP PICK
PAST TOP PICK
June 2, 2020
(A Top Pick Jun 26/19, Down 15%) None of the top 5 Canadian banks has ever cut dividends. These banks are in great shape and can weather this storm. Half of BNS' loans are insured. Bank amendments benefit the banks and not non-bank lenders.
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(A Top Pick Jun 26/19, Down 15%) None of the top 5 Canadian banks has ever cut dividends. These banks are in great shape and can weather this storm. Half of BNS' loans are insured. Bank amendments benefit the banks and not non-bank lenders.
PAST TOP PICK
PAST TOP PICK
May 1, 2020
(A Top Pick May 08/19, Down 21%) He continues to own this. He thinks the banks will definitely not cut dividends. They are being offered financial relief by the regulators. They are accommodating customers to reduce the delinquency of mortgages. They will get through this. He likes BNS in particular because of their Latin and South American footprint, where their is faster growth rates in the developing markets. He would be a buyer today. Yield 5%
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(A Top Pick May 08/19, Down 21%) He continues to own this. He thinks the banks will definitely not cut dividends. They are being offered financial relief by the regulators. They are accommodating customers to reduce the delinquency of mortgages. They will get through this. He likes BNS in particular because of their Latin and South American footprint, where their is faster growth rates in the developing markets. He would be a buyer today. Yield 5%
PAST TOP PICK
PAST TOP PICK
April 29, 2020
(A Top Pick Jul 25/19, Down 16%) He would still own this one. They have been streamlining operations and expanded into growing retail markets outside North America, which has slowed their profitability temporarily. He still thinks longer term the valuations will become attractive and lead to share price appreciation.
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(A Top Pick Jul 25/19, Down 16%) He would still own this one. They have been streamlining operations and expanded into growing retail markets outside North America, which has slowed their profitability temporarily. He still thinks longer term the valuations will become attractive and lead to share price appreciation.
PAST TOP PICK
PAST TOP PICK
March 16, 2020
(A Top Pick Feb 11/19, Down 26%) This can still fall further, though it has a lot. Now, it's very cheap and pays a fine yield. It's fairly safe to buy it. The banks are close to the bottom.
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(A Top Pick Feb 11/19, Down 26%) This can still fall further, though it has a lot. Now, it's very cheap and pays a fine yield. It's fairly safe to buy it. The banks are close to the bottom.
BUY
BUY
March 12, 2020
Dividend is safe. If they didn't cut in 2008, they won't cut now. People are worried that with the price of oil so low, we'll go into recession, rates will go down, and the Canadian consumer is more highly leveraged than the US consumer. But over the long term, the banks have compounded for the investor very well.
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Dividend is safe. If they didn't cut in 2008, they won't cut now. People are worried that with the price of oil so low, we'll go into recession, rates will go down, and the Canadian consumer is more highly leveraged than the US consumer. But over the long term, the banks have compounded for the investor very well.
TOP PICK
TOP PICK
February 26, 2020
An income pick. BNS is well-run, though earnings have been sloppy in recent quarters as they integrate acquisitions. He sees earnings growth. It trades cheaply at 10x earnings at a 5% dividend. You can own both US and Canadian banks which face different tailwinds. (Analysts’ price target is $77.67)
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Bank of Nova Scotia (BNS-T)
February 26, 2020
An income pick. BNS is well-run, though earnings have been sloppy in recent quarters as they integrate acquisitions. He sees earnings growth. It trades cheaply at 10x earnings at a 5% dividend. You can own both US and Canadian banks which face different tailwinds. (Analysts’ price target is $77.67)
PAST TOP PICK
PAST TOP PICK
February 20, 2020
(A Top Pick Mar 13/19, Up 8%) Thought it would be out of the doghouse by now. Problems in Chile and Canadian consumer have caused it to struggle. Still happy to own it.
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Bank of Nova Scotia (BNS-T)
February 20, 2020
(A Top Pick Mar 13/19, Up 8%) Thought it would be out of the doghouse by now. Problems in Chile and Canadian consumer have caused it to struggle. Still happy to own it.
BUY WEAKNESS
BUY WEAKNESS
February 18, 2020

Ranks after TD and Royal as a bank. They're in some emerging markets that make him cautious.

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Bank of Nova Scotia (BNS-T)
February 18, 2020

Ranks after TD and Royal as a bank. They're in some emerging markets that make him cautious.

COMMENT
COMMENT
February 10, 2020

They're doing a better job as a Canadian retail bank, but there are some problems with their Latin American operations. This is getting interesting with its valuation and potential growth. However, low interest rates are a damper. He'd rank this behind TD, his top Canadian bank. He owns no Canadian banks now.

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Bank of Nova Scotia (BNS-T)
February 10, 2020

They're doing a better job as a Canadian retail bank, but there are some problems with their Latin American operations. This is getting interesting with its valuation and potential growth. However, low interest rates are a damper. He'd rank this behind TD, his top Canadian bank. He owns no Canadian banks now.

TOP PICK
TOP PICK
February 6, 2020
He likes the banks generally because they are really cheap and this is the cheapest of the banks that is on good technical support. He cycles out of the high ones and gets into the low ones. (Analysts’ price target is $77.07)
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He likes the banks generally because they are really cheap and this is the cheapest of the banks that is on good technical support. He cycles out of the high ones and gets into the low ones. (Analysts’ price target is $77.07)
PARTIAL BUY
PARTIAL BUY
January 28, 2020

Among the Canadian banks, it's the riskiest, given its move into Latin America, but this could also be opportunity. It's the cheapest Canadian bank. It could struggle in the first half of 2020 given slow global growth, but should do better in the latter half. He kind of likes it here. But he'd buy this along with RY and BMO to get more geographic diversification. He wouldn't buy only BNS.

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Among the Canadian banks, it's the riskiest, given its move into Latin America, but this could also be opportunity. It's the cheapest Canadian bank. It could struggle in the first half of 2020 given slow global growth, but should do better in the latter half. He kind of likes it here. But he'd buy this along with RY and BMO to get more geographic diversification. He wouldn't buy only BNS.

PAST TOP PICK
PAST TOP PICK
January 21, 2020
(A Top Pick Nov 19/19, Down 4%) Long-term, banks are fine. Not a trade, but a hold. Now could be a buying opportunity.
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(A Top Pick Nov 19/19, Down 4%) Long-term, banks are fine. Not a trade, but a hold. Now could be a buying opportunity.
COMMENT
COMMENT
January 10, 2020

Canadian Banks? He is very pessimistic on Canada in general. We are the whipping horse of the world right now. He is not a fan of this sector. News of high loan loss provisions is making him nervous and he sees global shorting going on. He favours US banks instead. If he were to look at one Canadian bank, it might be BNS. A yield over 5% and share price upside to $85.36.

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Canadian Banks? He is very pessimistic on Canada in general. We are the whipping horse of the world right now. He is not a fan of this sector. News of high loan loss provisions is making him nervous and he sees global shorting going on. He favours US banks instead. If he were to look at one Canadian bank, it might be BNS. A yield over 5% and share price upside to $85.36.

PAST TOP PICK
PAST TOP PICK
January 9, 2020
(A Top Pick Jan 09/19, Up 8%) Not exactly a barn burner of a return, but nothing to sneeze at either. Still buying it with fresh dollars today. Structural alliance to Pacific Alliance developing countries, which are under-banked. Trades at a discount to the others. Catalysts include excess capital, selling off some small assets, and integrating recently acquired fund management company.
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(A Top Pick Jan 09/19, Up 8%) Not exactly a barn burner of a return, but nothing to sneeze at either. Still buying it with fresh dollars today. Structural alliance to Pacific Alliance developing countries, which are under-banked. Trades at a discount to the others. Catalysts include excess capital, selling off some small assets, and integrating recently acquired fund management company.
PAST TOP PICK
PAST TOP PICK
January 8, 2020
(A Top Pick Jan 15/19, Up 6%) Most of the return was from the dividend. He thinks the Canadian banks are better valued than US counterparts. Provisions for loans losses and software development write downs resulted in a $175 million earnings report recently. He would make this one of his most favoured Canadian banks -- trading at 1.4 times book and a near 5% yield. It has the most potential for capital appreciation going forward.
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(A Top Pick Jan 15/19, Up 6%) Most of the return was from the dividend. He thinks the Canadian banks are better valued than US counterparts. Provisions for loans losses and software development write downs resulted in a $175 million earnings report recently. He would make this one of his most favoured Canadian banks -- trading at 1.4 times book and a near 5% yield. It has the most potential for capital appreciation going forward.
COMMENT
COMMENT
January 8, 2020

CDN Bank shares or ETF? As a porfolio manager, he prefers to use his expertise to pick individual stocks. An ETF gives you the group and no ability to outperform. Canadian banks are favorable over US counterparts he thinks, including the higher yield. He likes BNS and RY. He does not hold much in TD at the moment. He holds about 20% of his portfolio in banks.

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CDN Bank shares or ETF? As a porfolio manager, he prefers to use his expertise to pick individual stocks. An ETF gives you the group and no ability to outperform. Canadian banks are favorable over US counterparts he thinks, including the higher yield. He likes BNS and RY. He does not hold much in TD at the moment. He holds about 20% of his portfolio in banks.

DON'T BUY
DON'T BUY
January 7, 2020
Banks did poorly in the second half of 2019. BNS has had a long downturn for two years, the enjoyed a pop on August earnings, then has since retreated down. Canadian banks do well Jan. 24- April 15. But wait till BNS itself picks up before entering, in addition to its seasonality. Need to see some momentum.
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Banks did poorly in the second half of 2019. BNS has had a long downturn for two years, the enjoyed a pop on August earnings, then has since retreated down. Canadian banks do well Jan. 24- April 15. But wait till BNS itself picks up before entering, in addition to its seasonality. Need to see some momentum.
HOLD
HOLD
January 3, 2020
He owns this one. It is about 50% international -- almost all outside of the US. This makes it different from all other banks. The outlook is looking good. They have bought some wealth management assets in Canada. Q4 earnings were in the middle of the pack. He thinks the dividend will grow. He would continue to hold.
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He owns this one. It is about 50% international -- almost all outside of the US. This makes it different from all other banks. The outlook is looking good. They have bought some wealth management assets in Canada. Q4 earnings were in the middle of the pack. He thinks the dividend will grow. He would continue to hold.
HOLD
HOLD
December 23, 2019
If you are holding it for a nice income stream he would stick with it. He only holds NA-T and a little bit of TD-T. Insurance companies are a better place to invest, however.
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Bank of Nova Scotia (BNS-T)
December 23, 2019
If you are holding it for a nice income stream he would stick with it. He only holds NA-T and a little bit of TD-T. Insurance companies are a better place to invest, however.
COMMENT
COMMENT
December 18, 2019

BNS or TD? He prefers BNS over TD. TD is more of a play on the US and he wants a bank with the least exposure in Canada.

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Bank of Nova Scotia (BNS-T)
December 18, 2019

BNS or TD? He prefers BNS over TD. TD is more of a play on the US and he wants a bank with the least exposure in Canada.

COMMENT
COMMENT
December 17, 2019
Outlook for Canadian banks is solid, given fine expense control. BNS has made changes in their international operations, so it will be noisy in quarters to come, but good for the long term. BNS pays a fine dividend, but doesn't see many capital gains in any bank.
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Bank of Nova Scotia (BNS-T)
December 17, 2019
Outlook for Canadian banks is solid, given fine expense control. BNS has made changes in their international operations, so it will be noisy in quarters to come, but good for the long term. BNS pays a fine dividend, but doesn't see many capital gains in any bank.
BUY
BUY
December 13, 2019
Growing loss provisions? There has been an increase in credit loss provisions and this has been a trend among all the Canadian banks. This is part of normalizing and increased regulations. Previously banks did not need provisions until they thought the loan was coming due. She has been buying into this bank. They are refocusing on core areas and into to wealth management assets. It is trading at a good valuation the dividend is growing.
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Bank of Nova Scotia (BNS-T)
December 13, 2019
Growing loss provisions? There has been an increase in credit loss provisions and this has been a trend among all the Canadian banks. This is part of normalizing and increased regulations. Previously banks did not need provisions until they thought the loan was coming due. She has been buying into this bank. They are refocusing on core areas and into to wealth management assets. It is trading at a good valuation the dividend is growing.
DON'T BUY
DON'T BUY
December 6, 2019
If we see a Santa Clause rally in the market, most stocks will go up. Relative to the market, banks might see further erosion. He wouldn’t buy the bank just to play the rally. Still lots of changes in S. America. He would wait until January to see how it goes. We’re finishing off the seasonality of banks.
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If we see a Santa Clause rally in the market, most stocks will go up. Relative to the market, banks might see further erosion. He wouldn’t buy the bank just to play the rally. Still lots of changes in S. America. He would wait until January to see how it goes. We’re finishing off the seasonality of banks.
COMMENT
COMMENT
December 4, 2019
Seasonal now? Typically bank stocks drift higher entering earnings season, so this is normal. Even though BNS match estimates, it sold off. Normal. That said, bank stocks can still do well, though he advises rotating from Canadian to American banks which enjoy more runway. $71 is support, which previously was the resistance level. BNS is holding up well with income growth.
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Seasonal now? Typically bank stocks drift higher entering earnings season, so this is normal. Even though BNS match estimates, it sold off. Normal. That said, bank stocks can still do well, though he advises rotating from Canadian to American banks which enjoy more runway. $71 is support, which previously was the resistance level. BNS is holding up well with income growth.
BUY
BUY
December 3, 2019

BNS vs. BMO He prefers BNS, though their last report disappointed. Their credit did hold up well; capital positions are strong. BMO just reported this morning. BNS pays a slightly higher yield. PB is identical. BNS will enjoy a better upside given its Latin American operations, whereas BMO is focussed on North America. Both are buys.

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BNS vs. BMO He prefers BNS, though their last report disappointed. Their credit did hold up well; capital positions are strong. BMO just reported this morning. BNS pays a slightly higher yield. PB is identical. BNS will enjoy a better upside given its Latin American operations, whereas BMO is focussed on North America. Both are buys.

BUY
BUY
November 29, 2019
This has been the toughest bank to own given their exposure in Chile and other locations in South America. He still owns a little for the international returns. Investors are likely putting a higher discount on them, because of the higher risk factors. You should still be able to see high single-digit returns this upcoming year. He would always hold a basket of the Canadian banks. You could pick up some at these levels.
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Bank of Nova Scotia (BNS-T)
November 29, 2019
This has been the toughest bank to own given their exposure in Chile and other locations in South America. He still owns a little for the international returns. Investors are likely putting a higher discount on them, because of the higher risk factors. You should still be able to see high single-digit returns this upcoming year. He would always hold a basket of the Canadian banks. You could pick up some at these levels.
BUY
BUY
November 26, 2019
Results were in line with analyst estimates. Overall, banks have lagged here and represent good value here. Relative to US banks, they are trading at a good discount. Canadian housing market collapse concerns have been unfounded. Their move out of Caribbean markets was positive.
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Bank of Nova Scotia (BNS-T)
November 26, 2019
Results were in line with analyst estimates. Overall, banks have lagged here and represent good value here. Relative to US banks, they are trading at a good discount. Canadian housing market collapse concerns have been unfounded. Their move out of Caribbean markets was positive.
TOP PICK
TOP PICK
November 19, 2019
Any big Canadian bank is fine. It's consolidated a lot. It's underperformed its peers, but now it's ready to break out and will make up lost ground. For once, he doesn't need to chase it. (Analysts’ price target is $78.13)
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Bank of Nova Scotia (BNS-T)
November 19, 2019
Any big Canadian bank is fine. It's consolidated a lot. It's underperformed its peers, but now it's ready to break out and will make up lost ground. For once, he doesn't need to chase it. (Analysts’ price target is $78.13)
PAST TOP PICK
PAST TOP PICK
November 15, 2019
(A Top Pick Nov 30/18, Up 10%) Still likes it. He thinks people misjudged the company simply because it’s not a pure Canadian play. More a play on central and South American play. It has one of the highest dividends for a bank.
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Bank of Nova Scotia (BNS-T)
November 15, 2019