Bank of Nova Scotia (BNS)
The last of the major Canadian banks is Bank of Nova Scotia (BNS). Not known for its Canadian retail banking, its biggest calling cards are its businesses outside of Canada in Latin America and Asia. Analysts expect it to deliver a 9.1% increase in adjusted net income in the fourth quarter to C$1.6 billion, 47% of which will come from outside of Canada.
In terms of diversification, no other Canadian bank comes close.
The bank’s three main targets in 2013 were to increase earnings per share by at least 5%, generate a return on equity of at least 15% on those earnings and maintain a productivity ratio (operating expenses as a percentage of total revenue) of less than 56%.
As of the third quarter, BNS’ earnings per share had grown by 12%, its return on equity was 16.6% and its productivity ratio was 53.4% — a winner all around. Its dividend yield is 3.9%, right in line with its other Canadian peers.
BNS Rating: 8
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.