Skip to Content

Bank of Nova Scotia BNS

Morningstar Rating
$51.78 +0.62 (1.21%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Bank of Nova Scotia Earnings: Solid Results, but Provisioning Will Be Headwind to Earnings Growth

Narrow-moat-rated Bank of Nova Scotia reported solid results that were largely in line with our expectations. Net revenue increased 6% year over year and 2% from last quarter to CAD 8.4 billion, with fees and net interest income contributing to the growth. Adjusted net income fell 6% from last year but rose 35% from last quarter to CAD 2.2 billion. The annual decrease and sequential increase were primarily driven by the bank’s credit provisioning expense, which was CAD 962 million versus CAD 638 million last year and CAD 1.25 billion last quarter. As we incorporate these results, we do not plan to materially alter our CAD 70/$52 fair value estimate. We see the shares as only modestly undervalued.

Price vs Fair Value

BNS is trading at a 3% discount.
Price
$50.36
Fair Value
$48.00
Uncertainty
Low
1-Star Price
$57.00
5-Star Price
$18.20
Economic Moat
Jwtzjv
Capital Allocation
Sqzkzbm

Bulls Say, Bears Say

Bulls

The Canadian market remains attractive; the government has placed barriers to entry that protect high returns.

Bears

Higher interest rates and rising amortization periods for mortgages show the Canadian consumer is set to come under increased strain for the foreseeable future.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BNS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$51.16
Day Range
$51.0951.98
52-Week Range
$39.8051.98
Bid/Ask
$51.85 / $52.12
Market Cap
$63.28 Bil
Volume/Avg
5.0 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
11.01
Price/Sales
2.63
Dividend Yield (Trailing)
6.01%
Dividend Yield (Forward)
6.06%
Total Yield
6.01%

Company Profile

Bank of Nova Scotia is a global financial services provider. The bank has five business segments: Canadian banking, international banking, global wealth management, global banking and markets, and other. It offers a range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. The bank's international operations span numerous countries and are more concentrated in Central and South America.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
89,483

Competitors

Valuation

Metric
BNS
TD
CM
Price/Earnings (Normalized)
11.0110.5110.37
Price/Book Value
1.211.411.30
Price/Sales
2.632.762.68
Price/Cash Flow
5.389.635.75
Price/Earnings
BNS
TD
CM

Financial Strength

Metric
BNS
TD
CM
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BNS
TD
CM
Return on Assets (Normalized)
0.57%0.75%0.69%
Return on Equity (Normalized)
11.52%14.20%13.91%
Return on Invested Capital (Normalized)
Return on Assets
BNS
TD
CM
See how this stock stacks up to its competitors with Morningstar Investor

Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPM
JPMorgan Chase & CoXghdqfrypCds$576.9 Bil
BAC
Bank of America CorpXlkxxvgMgqxc$299.2 Bil
WFC
Wells Fargo & CoCmxlbffdZydhz$205.2 Bil
HSBC
HSBC Holdings PLC ADRXthfgnwkPswk$148.0 Bil
RY
Royal Bank of CanadaDhxxybgpXxtjs$142.2 Bil
C
Citigroup IncLwrgpljqlGgwr$121.1 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRGyqsmpvyGwdh$119.2 Bil
TD
The Toronto-Dominion BankFqlzftgcycJgnc$106.4 Bil
UBS
UBS Group AGWygrxctsqdDwsgy$98.3 Bil
SAN
Banco Santander SA ADRNpwwCsqqm$76.8 Bil

Sponsor Center