Bank of Nova Scotia (BNS, Financial) in the fiscal 2016 fourth quarter reported 9% growth in the net income to $2.011 billion and 8% growth in diluted earnings per share to $1.57 due to strong performances from its domestic and international banking businesses.
Bank of Nova Scotia posted ROE of 14.7%. Its revenue for the fourth quarter grew 10.1%to $6.75 billion, up from $6.13 billion, and the provision for credit losses is $550 million, down $1 million compared to the corresponding period last year. Bank of Nova Scotia has beaten the analysts’ estimates for earnings per share of $1.13.
Moreover, in fiscal 2016 the bank reported 6% growth in adjusted net income after restructuring to $7.646 billion and 6% growth in adjusted diluted earnings per share to $6.
Bank of Nova Scotia in fiscal 2016 saw growth in the personal, commercial and wealth businesses, both in Canada and in the key Pacific Alliance markets. The bank is investing in digital capabilities for an even better customer experience and more efficient operations. Additionally, Bank of Nova Scotia has improved the asset and deposit mix to generate improved returns for shareholders. International Banking has posted strong results, and annual earnings exceeded $2 billion for the first time due to the key Pacific Alliance region that again recorded double-digit deposit and asset growth along with the improved performance from the Caribbean and Central America.
While economic growth has moderated somewhat in select markets, Bank of Nova Scotia will strengthen and drive deeper customer relationships to gain profitable market share and grow earnings. In addition, the Global Banking and Markets segment improved in the second half of fiscal 2016 due to better performances in fixed income and corporate banking.
Bank of Nova Scotia has declared a quarterly dividend of 74 cents per share, payable on Jan. 27, 2017, to stockholders of record on Jan. 3, 2017, with an ex-dividend date of Dec. 29.
Adams Asset Advisors LLC raised its stake in Bank of Nova Scotia by 5.1% during the third quarter as per the most recent disclosure with the Securities and Exchange Commission (SEC). Zacks Investment Research has upgraded the shares of Bank of Nova Scotia from a sell rating to a hold rating on Nov. 25.
Bank of Nova Scotia stock has risen 18.71% in a year (source: Google Finance). According to tipranks.com, five analysts have covered the stock while recommending a “Moderate Buy.” Bank of Nova Scotia has an average price target of $60, which is a further upside of 11.23%.
Disclosure: I do not own any shares or any stocks mentioned in this article.
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