Bank of Nova Scotia (NYSE:BNS) Stock, Quote.Headers.trade-ideas

Bank of Nova Scotia

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.

Earnings

Large Cap

News

Management

Federal Reserve

Markets

Analyst Ratings

Trading Ideas

Historically, September has been a sluggish month for the stock market, a trend that continued this year, with the S&amp;P 500 Index declining 4.4% in the first week.

Keep an Eye on 3 S&amp;P 500 Bank Stocks With Biggest Weekly Declines

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Earnings Misses

Penny Stocks

Small Cap

Tech

SDIG

Stronghold Digital Mining, Inc. (NASDAQ: SDIG) came out with a quarterly loss of $0.74 per share versus the Zacks Consensus Estimate of a loss of $0.41. This compares to loss of $2.40 per share a year ago. These figures are adjusted for non-recurring items.

Stronghold Digital Mining, Inc. Reports Q2 Loss, Lags Revenue Estimates

Business,Man,Sign,A,Contract,Investment,Professional,Document,Agreement.,Meeting

Equities

Movers

KeyCorp receives a strategic investment from Scotiabank, expected to boost CET1 capital ratio and increase tangible book value per share by over 10%. Initial purchase to close in August, with additional purchase in Q1 2025.

Why Is KeyCorp Stock Shooting Higher Today?

Bank Nova Scotia Halifax Pfd 3 Ordinary Shares

BONSO ELECTRS INTL INC by Bonso Electronics International, Inc.

Bonso Electronics International Inc

Bank of Nova Scotia FXDFR PRF PERPETUAL CAD 25 - Ser 40 (NVCC)

Historically, September has been a sluggish month for the stock market, a trend that continued this year, with the S&amp;P 500 Index declining 4.4% in the first week.
With the Federal Reserve&#39;s first interest rate cut since March 2020 in focus, investors are on the edge. This was further compounded by a significant cooling down of the job market, sparking recession fears. Hence, the market participants are now expecting a sizable rate cut at the two-day FOMC meeting on Sept.17-18.
As the broader market witnessed sustained weakness, bank stocks were not untouched. The KBW Nasdaq Bank Index and the S&amp;P 500 banks industry group index fell more than 5.5%. The three worst-performing S&amp;P 500 banks &ndash; KeyCorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/key#NYSE">KEY</a>), Wells Fargo (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wfc#NYSE">WFC</a>) and U.S. Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/usb#NYSE">USB</a>) &ndash; recorded a steeper fall than the index and the industry they belong to. These banks currently carry a Zacks Rank of 3 (Hold). 
One-Week Price Performance
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/22/76979.jpg?v=189631355" />
Image Source: Zacks Investment Research
Traditionally, banks perform well in a rising rate environment, but this time it&#39;s different. Aggressive interest rate hikes by the central bank in the past four decades have weakened banks&#39; financial performance due to sluggish loan demand, rising funding/deposit costs and deteriorating asset quality.
In response, banks are diversifying revenue streams toward fee income sources, curtailing risky loan portfolios and restructuring balance sheets to maintain profitability. These efforts, combined with potential rate cuts, are expected to support banks&#39; profitability this year and beyond.
<h2>3 S&amp;P 500 Banks With Steep Weekly Dip to Watch</h2>
KeyCorp: This Cleveland, OH-based lender has a presence across 15 states through a network of almost 1,000 branches and 1,200 automated teller machines (ATMs).
On Aug. 12, KeyCorp announced a minority equity investment of $2.8 billion (in aggregate) by The Bank of Nova Scotia (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bns#NYSE">BNS</a>) in two tranches. The first phase was completed on Aug. 30, and now BNS holds a 4.9% equity stake in KEY.
The second part involves BNS making an additional $2 billion of investment, expected to close in the first quarter of 2025, pending the Fed&#39;s consent. After this, BNS will have a 14.9% equity interest in KeyCorp.
Once the capital raise is complete, KeyCorp plans to evaluate repositioning its available-for-sale (AFS) securities portfolio by divesting low-yielding, longer-duration AFS securities and investing the proceeds in higher-yielding, more liquid securities.
Though the divestiture of lower-yielding AFS securities will result in a one-time after-tax loss of almost half of the capital raised, it will lead to approximately $400 million in additional net interest income (NII) in 2025 and 2026. This will also be low single-digit accretive to KeyCorp&#39;s 2025 earnings and slightly accretive to its 2026 earnings. 
Earnings Estimates
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b9/76980.jpg?v=436428640" />
Image Source: Zacks Investment Research
KeyCorp is expected to benefit from the Fed&#39;s interest rate cuts. While higher interest rates led to substantial growth in NII, the rising funding costs have been straining NII and net interest margin. Last year, the company&#39;s NII declined 13.6% and NIM contracted 46 basis points to $3.91 billion and 2.17%, respectively.
For 2024, KeyCorp expects NII to decline 2-5% because of higher funding costs and subdued loan demand.
The minority equity investment by BNS, interest rate cuts and the company&#39;s efforts to strengthen fee income sources will support top-line growth. So, investors should keep an eye on the stock. Last week, KEY stock was down 8%.
Wells Fargo: As one the biggest American lenders, the company operates through 4,227 retail bank branches.
Once one of the biggest mortgage lenders, the company is now gradually moving away from this business. On Aug. 20, WFC announced a definitive agreement to divest its non-agency third-party servicing segment of its Commercial Mortgage Servicing business to Trimont. The transaction is expected to close in early 2025, subject to customary closing conditions.
In 2023, the company announced its exit from the Correspondent business and reduction of its mortgage servicing portfolio. 
Earnings Estimates
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e5/76981.jpg?v=2020480856" />
Image Source: Zacks Investment Research
Wells Fargo&#39;s prudent expense management initiatives support its financials. Since third-quarter 2020, the company has been actively engaging in cost-cutting measures, including streamlining its organizational structure, closure of branches and reduction in headcount. Hence, non-interest expenses witnessed a negative CAGR of 1.1% over the last four years (ended 2023). The bank delivered gross expense savings aggregating $10 billion in 2021-2023 and expects to continue with these efficiency initiatives in 2024.
Nonetheless, the asset cap placed by the Fed after the 2016 account scandal remains the biggest concern for WFC. Though the company is striving hard to meet the regulatory requirements, it is limiting loan growth and hurting NII expansion.
Considering the subdued loan demand and other factors like high interest rates, asset repricing, competitive market conditions, and the broader economic environment, the company expects 2024 NII to be down approximately 8-9%.
Like all banks, interest rate cuts will be a boon for WFC. This, along with its solid fundamentals, should offer investors robust returns over time. The stock was down 7.7% last week. Investors interested in investing in WFC should keep track of the company&#39;s financials and make informed decisions.
U.S. Bancorp: Headquartered in Minneapolis, MN, the company operates in the Midwest and West regions of the United States.
Diverse revenue sources and inorganic growth moves will support U.S. Bancorp&#39;s financials. Last month, the company, through its lead banking division, U.S. Bank, expanded its focus on the healthcare industry and acquired Salucro Healthcare Solutions LLC. It will be integrated into Elavon, one of the largest global payments processing firms.
Further, U.S. Bank announced a partnership with Edward Jones to offer co-branded banking and credit card solutions to Edward Jones&#39; U.S. clients. Starting in late 2025, Edward Jones&#39; 19,000+ financial advisors, managing $2 trillion in assets, will introduce these products to their 8 million clients across North America.
These expansion initiatives, combined with the ongoing investments in innovative product enhancements and services, will strengthen the company&#39;s fee-based businesses. 
Earnings Estimates
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/db/76984.jpg?v=637812274" />
Image Source: Zacks Investment Research
On the other hand, high rates and weak loan demand are hurting its NII because of rising funding costs. Hence, as the central bank cuts interest rates, deposit costs are likely to stabilize gradually. Also, USB&#39;s investment portfolio repositioning efforts and less deposit migration will support the metric. For 2024, management expects NII to be in the range of $16.1-$16.4 billion, down from the 2023 level.
Also, solid loan pipelines in the commercial and credit card space will drive loan growth, while stabilizing deposit trends will support deposit growth. U.S. Bancorp has made several strategic acquisitions in the past years, which have opened new markets and fortified existing ones.
Last week, shares of USB lost 5.8%. Investors should keep a note of the company&#39;s latest developments and financial strength to make the right investment decision.
<a href="https://www.zacks.com/stock/news/2333339/keep-an-eye-on-3-s-p-500-bank-stocks-with-biggest-weekly-declines?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2333339">To read this article on Zacks.com click here.</a>

Keep an Eye on 3 S&P 500 Bank Stocks With Biggest Weekly Declines

RBC Capital analyst Darko Mihelic maintains Bank of Nova Scotia (NEOE: BNS) with a Sector Perform and raises the price target from C$62 to C$65.

Price Target

RBC Capital Maintains Sector Perform on Bank of Nova Scotia, Raises Price Target to C$65

WIIM

Bank of Nova Scotia shares are trading higher after the company reported better-than-expected Q3 adjusted EPS results.

Earnings Beats

Bank of Nova Scotia Q3 2024 Adj. EPS C$1.72 Beats C$1.62 Estimate, Sales C$8.364B Miss C$8.543B Estimate

Stronghold Digital Mining, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sdig#NASDAQ">SDIG</a>) came out with a quarterly loss of $0.74 per share versus the Zacks Consensus Estimate of a loss of $0.41. This compares to loss of $2.40 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -80.49%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced earnings of $0.35, delivering a surprise of 488.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Stronghold Digital Mining, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $19.1 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 5.19%. This compares to year-ago revenues of $18.23 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
Stronghold Digital Mining shares have lost about 63.8% since the beginning of the year versus the S&amp;P 500&#39;s gain of 13.9%.
<h2>What&#39;s Next for Stronghold Digital Mining?</h2>
While Stronghold Digital Mining has underperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Stronghold Digital Mining: unfavorable. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.47 on $19.3 million in revenues for the coming quarter and -$0.94 on $86.4 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Finance sector, Bank of Nova Scotia (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bns#NYSE">BNS</a>), is yet to report results for the quarter ended July 2024. The results are expected to be released on August 27.
This bank is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of -9.2%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Bank of Nova Scotia&#39;s revenues are expected to be $6.2 billion, up 2.4% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2322083/stronghold-digital-mining-inc-sdig-reports-q2-loss-lags-revenue-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2322083">To read this article on Zacks.com click here.</a>

RBC Capital analyst Darko Mihelic reiterates Bank of Nova Scotia (TSX:<a class="ticker" href="https://www.benzinga.com/stock/BNS#TSX">BNS</a>) with a Sector Perform and maintains C$62 price target.

Reiteration

TSX:BNS

RBC Capital Reiterates Sector Perform on Bank of Nova Scotia, Maintains C$62 Price Target

Bank of Nova Scotia shares are trading lower. The company announced it acquired a 14.9% stake in KeyCorp worth $2.8 billion.

KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) shares are trading higher after the company disclosed a strategic minority investment agreement with The Bank of&nbsp;Nova Scotia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>).
As per the deal, Scotiabank will invest approximately $2.8 billion in KeyCorp, acquiring about <a href="https://www.benzinga.com//node/40307888">14.9% of common stock at $17.17 per share.</a>
The investment is expected to boost KeyCorp&#8217;s CET1 capital ratio by 195 basis points to 12.4% and increase tangible book value per share by over 10% as of June 30, 2024.
KeyCorp plans to reposition its available-for-sale securities portfolio to enhance profitability and capital strength after the capital raise. This is expected to increase the CET1 capital ratio to 11.3%-11.6%, be accretive to <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">2025 EPS, and slightly accretive to 2026 EPS</a>.
The pro forma CET1 ratio, including AOCI, should reach 9.1%-9.4%, a 185 to 210 basis point improvement from June 30, 2024, providing a solid buffer for Basel III regulations.
Scotiabank will buy about 163 million shares of KeyCorp in two stages: an initial $0.8 billion investment, giving Scotiabank a 4.9% stake after the Hart-Scott-Rodino (HSR) Act waiting period, followed by an additional $2.0 billion investment, increasing its stake to approximately 14.9% upon Federal Reserve approval.
The initial purchase is expected to close by the end of August, with the additional purchase, contingent on customary closing conditions and Federal Reserve approval, anticipated in the&nbsp;first quarter of 2025.
&#8220;Scotiabank approached us with a unique opportunity to raise capital on attractive terms. While we continue to be comfortable with our current capital position, we determined that the&nbsp;investment&nbsp;enables Key&nbsp;to accelerate our well-communicated capital and earnings improvement while bolstering our strategic position,&#8221;&nbsp;said&nbsp;KeyCorp Chairman and Chief Executive Officer&nbsp;Chris Gorman.
In July, KeyCorp&nbsp;reported second quarter EPS&nbsp;of $0.25, in line with the consensus, and sales&nbsp;of $1.526 billion, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39833831/keycorp-reports-second-quarter-2024-net-income-of-237-million-or-25-per-diluted-common-share" rel="noreferrer noopener">surpassing the consensus of&nbsp;$1.525 billion</a>.
Price Action: KEY shares are up 17.9% at $17.24 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40253875/jim-cramer-this-energy-stock-is-a-buy-stay-away-from-dexcom" target="_blank" rel="noreferrer noopener">Jim Cramer: This Energy Stock Is A Buy, Stay Away From DexCom</a></li>
</ul>

KeyCorp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) today announced it has reached an agreement under which The Bank of Nova Scotia ("Scotiabank") (TSX:<a class="ticker" href="https://www.benzinga.com/stock/BNS#TSX">BNS</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) will make a&nbsp;strategic&nbsp;minority investment in KeyCorp of&nbsp;approximately $2.8 billion, representing approximately 14.9% pro forma common&nbsp;stock ownership, for&nbsp;a fixed price of $17.17 per share.
"Scotiabank approached us with a unique opportunity to raise capital on attractive terms. While we continue to be comfortable with our current capital position, we determined that the&nbsp;investment&nbsp;enables Key&nbsp;to accelerate our well-communicated capital and earnings improvement while bolstering our strategic position,"&nbsp;said&nbsp;KeyCorp Chairman and Chief Executive Officer, Chris Gorman. "Further, this transaction creates greater capacity for growth by enabling additional investments in targeted scale across our franchise and increases Key's strategic agility as we navigate an uncertain environment from a position of strength. We have a proven track record of driving growth in areas such as investment banking, payments, and wealth management, and we expect to leverage our strengthened financial position to lean into these areas more aggressively."
Transaction Details The approximately $2.8 billion minority investment is estimated to increase KeyCorp's June 30, 2024, CET1 capital ratio by 195 basis points to 12.4% and increase tangible book value per share by more than 10%.
In conjunction with completion of the capital raise, KeyCorp intends to evaluate a potential repositioning of the available-for-sale securities portfolio with the objective of accelerating the timing of expected profitability, liquidity and capital improvements, and generally increasing resiliency. The capital raise, along with the contemplated repositioning, are estimated to result in a strong net CET1 capital ratio in the range of 11.3% to 11.6%,1 while being low single-digit accretive to 2025 earnings per share and slightly accretive to 2026 earnings per share. The estimated CET1 capital ratio, pro forma for the capital raise and balance sheet repositioning, inclusive of AOCI&nbsp;is expected to be in the range of 9.1% to 9.4%,1 a 185 to 210 basis point improvement from June 30, 2024, providing a substantial cushion&nbsp;as Basel III rules are eventually finalized.&nbsp;Such future actions would be subject to market conditions and other factors.
As part of the transaction, KeyCorp and Scotiabank plan to explore commercial opportunities to partner together in the future to best serve their respective client bases.
Timing and Approvals Scotiabank&nbsp;will purchase approximately 163 million shares&nbsp;of KeyCorp's common stock in two tranches: an initial investment of $0.8 billion, after which Scotiabank will own 4.9% of KeyCorp's common stock, will occur upon expiration of the antitrust waiting period under the Hart-Scott-Rodino (HSR) Act, followed by an additional investment of $2.0 billion, after which Scotiabank will own approximately 14.9% of KeyCorp's common stock, upon approval by the Federal Reserve.

Scotiabank Acquires 14.9% Stake in KeyCorp With $2.8B Strategic Investment

CADE

CVBF

EWBC

FCNCA

FMAO

GGAL

HBAN

IBTX

INDB

PPBI

TCBI

WSFS

WTFC

Shares of banking companies are trading lower amid overall market weakness on US economic concerns.

Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) shares are trading lower today. Visa has partnered with Amazon.Com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) to offer Canadian consumers more <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39522174/visa-expands-payment-options-for-amazon-customers-with-installments-plans" rel="noreferrer noopener">flexible payment options at checkout.</a>
Eligible Royal Bank Of Canada (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RY#NYSE">RY</a>) and The Bank of Nova Scotia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) credit cardholders can now select Installments enabled by Visa for qualifying purchases on Amazon.ca or the Amazon app.
This new option allows consumers to convert purchases into smaller, fixed payments over a set period.
&#8220;We are excited to offer our installments solution on Amazon through two of Canada&#8217;s leading issuers, granting more consumers access to diversified payment methods and greater financial control with one of the world&#8217;s largest online merchants,&#8221; said Dan Sanford, Head of Product for North America at Visa.
Installments are becoming a popular payment method among Canadians. Visa&#8217;s research indicates that 58% of Canadians are interested in using installments, and by 2026, this method is expected to account for nearly a quarter of all global e-commerce transactions.
Related Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39502281/judge-tosses-the-card-visa-mastercard-swipe-fee-settlement-reportedly-rejected" rel="noreferrer noopener">Judge Tosses The Card: Visa-Mastercard Swipe Fee Settlement Reportedly Rejected</a>
This collaboration with Amazon aims to meet this growing consumer demand.
Tyler Aldrich, Director of Amazon Payment Products, said, &#8220;Together with Visa, we&#8217;re pleased to offer customers greater choice, enabling customers to pay for their online purchases in ways that are convenient for them.&#8221;
Installments enabled by Visa provide issuers, processors, and merchants with a better payment option to meet customers where they are.
Visa and Amazon plan to extend this payment option to more consumers globally, enhancing the convenience and flexibility of online shopping.
Visa stock has gained more than 18% in the last 12 months. Investors can gain exposure to Visa and Mastercard stock via&nbsp;iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and SPDR Select Sector Fund – Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Price Action: V shares are trading lower by 1.64% at $269.12 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39428693/china-calls-on-visa-and-mastercard-to-slash-bank-card-transaction-fees-by-up-to-half-report" rel="noreferrer noopener">China Calls On Visa And Mastercard To Slash Bank Card Transaction Fees By Up To Half: Report</a>
Image from Shutterstock

General

AMZN

iShares Trust Dow Jones US Financial Services Index Fund

Shop Smart: Visa And Amazon Bring Flexible Payment Plans To Canadian Shoppers

Bank of Nova Scotia&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) reported second-quarter fiscal 2024 revenue growth of 5.5% year-over-year to C$8.347 billion,&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n39034196/scotiabank-reports-second-quarter-results" rel="noreferrer noopener">beating the consensus of C$8.256 billion.</a>
For the quarter, net interest income was C$4.694 billion, and non-interest income was $3.653 billion.
Adjusted EPS of C$1.58 declined from C$1.69 a year ago and above the consensus of C$1.56.
BNS reported a Common Equity Tier 1 (CET1) capital ratio of 13.2%, up from 12.3% last year.
Canadian Banking&#8217;s net income declined 4%&nbsp;year over year&nbsp;to C$1.01 billion, with revenue growth outpacing expenses, leading to positive operating leverage. Credit loss provisions rose, and deposits increased by 7% year over year.
International Banking&#8217;s adjusted net income rose C$33 million YoY, driven by higher net interest income and the positive impact of foreign currency translation.
Global Wealth Management&#8217;s adjusted net income increased 8%&nbsp;Y/Y&nbsp;to C$387 million, reflecting higher mutual fund fees and brokerage revenues.
Global Banking and Markets earnings stood at C$428 million, up 7% YoY, reflecting higher fee-based revenue and lower provision for credit losses.
The provision for credit losses stood at C$1.007 billion vs. C$709 million a year ago, and the ratio increased from 17&nbsp;basis points&nbsp;to 54 basis points.
Gross impaired loans increased to C$6.399 billion&nbsp;as&nbsp;at&nbsp;April 30, from C$6.119 billion last quarter, reflecting new formations in the International retail portfolios, mainly Chile and Mexico, and International commercial.
Adjusted return on equity stood at 11.3% vs. 12.3% the prior year.
&#8220;The Bank delivered solid results this quarter against a backdrop of ongoing macroeconomic uncertainty, reporting positive operating leverage driven by revenue growth and continued expense discipline.&nbsp;We are executing on our commitment to balanced growth as our deposit momentum continues, while maintaining strong capital and liquidity metrics,&#8221;&nbsp;commented Scott Thomson, President and CEO of Scotiabank.
Price Action: BNS shares are trading higher by 1.51% at $48.50 premarket at the last check Tuesday.
Image: Unsplash/ Alexander Grey

Scotiabank Beats The Odds: Solid Revenue Growth & Capital Strength Highlight Q2 Earnings

CORRECTION: Bank of Nova Scotia Q2 2024 Adj EPS C$1.58 Beats C$1.56 Estimate, Sales C$8.347B Beat $8.256B Estimate

BSBR

CATY

COLB

FFIN

FIBK

GBCI

GLBZ

ITUB

Shares of companies in the broader financial sector are trading lower as stocks fall after hotter-than-expected March inflation data, which has caused rate cut uncertainty.

Scotiabank's use of Google Cloud will enhance the Bank's commitment to its clients' digital experiences&nbsp;&nbsp;
TORONTO and SUNNYVALE, Calif., April 8, 2024 /PRNewswire/ -&nbsp;Scotiabank today announced an expanded partnership with Google Cloud, naming it the enterprise cloud platform of choice&nbsp;for the next phase of the Bank's cloud&nbsp;acceleration journey. The Bank will leverage Google Cloud technology to enhance client and employee experience, strengthen Bank security, and adopt new technologies, like generative AI, more quickly. This announcement builds on Scotiabank's <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4135640-1&amp;h=2358379684&amp;u=https%3A%2F%2Fwww.scotiabank.com%2Fca%2Fen%2Fabout%2Fperspectives.articles.digital.2021-09-google-cloud-scotiabank-partnership.html&amp;a=strategic+partnership">strategic partnership</a> with Google Cloud, extending its cloud-first commitment and accelerating its global data and analytics strategy.&nbsp;
"Scotiabank's partnership with Google Cloud reinforces the Bank's commitment to investing in strategic growth initiatives that make it easy to do business with us," says Michael Zerbs, Group Head, Technology &amp; Operations, Scotiabank. "We have an aggressive goal of moving the majority of the Bank's information and systems to the cloud over the next three years, maximizing the productivity of our business and the safety of our information, further demonstrating Scotiabank's investment in the long-term success of our clients, shareholders, and employees."
"Google Cloud has a long history of working with&nbsp;Scotiabank, and we are proud to expand our partnership at such a pivotal time for the Bank," says Matt Renner, President, Global Field Organization, Google Cloud. "Scotiabank has demonstrated its commitment to transforming their operations with Google-powered cloud and AI technologies, creating more engaging client experiences, with safety and privacy at the core." Scotiabank continues to prioritize innovation, digitization, and modernization of its operations. The Bank is already seeing the added value in the expanded partnership with Google Cloud, including:
<ul>
<li>Building with Vertex AI, leveraging the same tools Google uses to deploy and manage AI securely and at scale.</li>
<li>Moving its contact centers to Google Cloud's Contact Center AI (CCAI) technology, unlocking the ability to better understand and serve clients' needs.</li>
<li>An improved mobile experience with greater platform stability and reliability for clients.</li>
<li>Developing the first cloud-based client data hub for Scotiabank's Wealth Management business with a robust security and compliance framework to better protect and govern Bank data.</li>
<li>LLM-powered chatbot summarization that empowers live agents with instant context, enabling seamless chatbot-to-human handoffs and reducing client resolution times.</li>
<li>An enhanced employee experience with LLM-powered Q&amp;A and search, providing access to tailored knowledge and streamlining workflows.</li>
</ul>
"Through our work with Google Cloud, we are bringing efficiencies across the business – streamlining processes, migrating platforms, modernizing applications and data, and accelerating the delivery of enhanced capabilities," says Aris Bogdaneris, Group Head, Canadian Banking, Scotiabank. "These efforts will help to further enable Scotiabank's vision of being our clients'&nbsp;most trusted financial partner, and help us adapt more quickly, innovate safely and meet our transformational business objectives."
Scotiabank's long partnership with Google Cloud has enabled Scotiabank to create a more personal and predictive banking experience for its clients, including powering its <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4135640-1&amp;h=1665992568&amp;u=https%3A%2F%2Fwww.scotiabank.com%2Fcorporate%2Fen%2Fhome%2Fmedia-centre%2Fmedia-centre%2Fnews-release.html%3Fid%3D4005%26language%3Den&amp;a=award+winning+chatbot">award winning chatbot</a>. The Bank's chatbot continues to elevate the Bank's digital offerings and highlights the value of AI technology to enhance the digital client experience.
Learn more about this work at <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4135640-1&amp;h=386166088&amp;u=https%3A%2F%2Fcloud.withgoogle.com%2Fnext&amp;a=Google+Cloud+Next">Google Cloud Next</a>, where Grace Lee, SVP, Chief Data &amp; Analytics Officer at Scotiabank, will be participating on a panel on AI for Banking.
At its <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4135640-1&amp;h=3791043936&amp;u=https%3A%2F%2Fwww.scotiabank.com%2Fca%2Fen%2Fabout%2Finvestors-shareholders%2Finvestor-day.html&amp;a=Investor+Day">Investor Day</a> in December 2023, Scotiabank introduced its refreshed enterprise strategy, outlining its vision for a strong future for the Bank, focused on delivering sustainable, profitable growth through four strategic pillars: Growing and scaling in priority markets, Earning primary client relationships, Making it easy to do business with the Bank, and Winning as one team.

Scotiabank Announces It Will Leverage Google Cloud Technology To Enhance Client And Employee Experience, Strengthen Bank Security, And Adopt New Technologies, Like Generative AI, More Quickly

Barclays analyst Brian Morton initiates coverage on Bank of Nova Scotia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) with a Underweight rating and announces Price Target of $70.

Initiation

Barclays Initiates Coverage On Bank of Nova Scotia with Underweight Rating, Announces Price Target of $70

RBC Capital analyst Darko Mihelic maintains Bank of Nova Scotia (TSX:<a class="ticker" href="https://www.benzinga.com/stock/BNS#TSX">BNS</a>) with a Sector Perform and raises the price target from C$62 to C$64.

RBC Capital Maintains Sector Perform on Bank of Nova Scotia, Raises Price Target to C$64

Scotiabank shares are trading higher after the company reported better-than-expected Q1 results.

Scotiabank Reports Q1 2024 Return On Equity Of 11.8%, Compared To 9.8% Year Ago; The Bank Reported An Increased Common Equity Tier 1 Capital Ratio Of 12.9%, Up From 11.5% Last Year

Bank of Nova Scotia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) reported quarterly earnings of $1.24 per share which beat the analyst consensus estimate of $1.21 by 2.64 percent. This is a 7.31 percent decrease over earnings of $1.34 per share from the same period last year. The company reported quarterly sales of $6.20 billion which beat the analyst consensus estimate of $6.12 billion by 1.24 percent. This is a 4.29 percent increase over sales of $5.94 billion the same period last year.

Bank of Nova Scotia Q1 Adjusted EPS $1.24 Beats $1.21 Estimate, Sales $6.20B Beat $6.12B Estimate

My Top 10 High Dividend Yield Companies For September 2024: One Yields Above 9%

Bank of Nova Scotia (BNS) Scotiabank 25th Annual Global Banking and Markets Financials Summit (Transcript)

Canadian banks lower prime lending rate after policy rate cut

Big Banks Set To Soar, I Am Loading Up On Up To 8% Yields

5 Relatively Secure And Cheap Dividend Stocks To Invest In -- September 2024

Buy Low, Sell High, Get Paid To Wait (5 Easy Examples)

The Bank of Nova Scotia (BNS) Barclays 22nd Annual Global Financial Services Conference (Transcript)

Bank Of Nova Scotia (TSE:BNS) has released an update. The Bank of Nova Scotia has announced the issuance and sale of a series of Senior Medium-Term...

Bank of Nova Scotia Issues $2.3B in Notes

What Canadian Bank Earnings Say About The Health Of The Financial Sector

Strategically Building A $100,000 Dividend Portfolio With September's Top 10 High-Yield Picks

AAPL

AGCO

ALIZF

AMGN

ARCC

BBSEY

BNSPF

CTRA

LRCX

MPLX

MSFT

NTIOF

QCOM

SCHD

STLA

VOYA

Press Releases

Scotiabank's President and CEO Scott Thomson to Speak at the 25th Annual Scotiabank Global Banking and Markets Financials Summit

CMA, MD Financial Management, Scotiabank commit $5M to support national expansion of Well Doc initiative

Scotiabank's Group Head of Canadian Banking Aris Bogdaneris to Speak at Barclays 22nd Annual Global Financial Services Conference

Contracts

KeyCorp and Scotiabank Complete Initial Tranche of Strategic Minority Investment

Scotiabank Completes 4.9% Initial Investment in KeyCorp

Scotiabank decreases prime lending rate

Mutual Funds

Scotia Global Asset Management announces fund closure

Fintech

Dividends

Scotia Global Asset Management announces September 2024 cash distributions for Scotia ETFs

Scotiabank Announces President, Quebec Jean-François Courville to join the Bank on November 12

Scotiabank Partners with ZayZoon to Revolutionize Payroll in Canada by Offering Earned Wage Access Solution

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Comments

Bank of Nova Scotia

Bank of Nova Scotia (BNS) Forecast

Bank of Nova Scotia (NYSE:BNS) Stock, Quote.Headers.trade-ideas