Executive Summary
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -1% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Bank of Nova Scotia's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BNS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.9%
BNS
4.9%
CA Banks
4.5%
CA Market
1 Year Return
-22.6%
BNS
-22.4%
CA Banks
-24.5%
CA Market
Return vs Industry: BNS matched the Canadian Banks industry which returned -22.4% over the past year.
Return vs Market: BNS exceeded the Canadian Market which returned -24.5% over the past year.
Shareholder returns
| BNS | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.9% | 4.9% | 4.5% |
| 30 Day | -21.9% | -19.0% | -20.1% |
| 90 Day | -25.3% | -22.9% | -24.9% |
| 1 Year | -19.7%-22.6% | -19.2%-22.4% | -22.0%-24.5% |
| 3 Year | -20.6%-29.8% | -10.5%-20.6% | -14.2%-22.2% |
| 5 Year | 6.0%-14.1% | 20.4%-1.5% | -1.9%-16.5% |
Price Volatility Vs. Market
How volatile is Bank of Nova Scotia's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is The Bank of Nova Scotia (TSE:BNS) A Good Fit For Your Dividend Portfolio?1 month ago | Simply Wall St
What Type Of Shareholder Owns The Bank of Nova Scotia's (TSE:BNS)?2 months ago | Simply Wall St
Does Bank of Nova Scotia's (TSE:BNS) Share Price Gain of 14% Match Its Business Performance?Valuation
Is Bank of Nova Scotia undervalued compared to its fair value and its price relative to the market?
41.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BNS (CA$54.81) is trading below our estimate of fair value (CA$94.16)
Significantly Below Fair Value: BNS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BNS is poor value based on its PE Ratio (8x) compared to the Banks industry average (7.9x).
PE vs Market: BNS is good value based on its PE Ratio (8x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: BNS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BNS is overvalued based on its PB Ratio (1x) compared to the CA Banks industry average (1x).
Next Steps
Future Growth
How is Bank of Nova Scotia forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BNS's earnings are forecast to decline over the next 3 years (-1% per year).
Earnings vs Market: BNS's earnings are forecast to decline over the next 3 years (-1% per year).
High Growth Earnings: BNS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BNS's revenue (5% per year) is forecast to grow faster than the Canadian market (3.8% per year).
High Growth Revenue: BNS's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if BNS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Bank of Nova Scotia performed over the past 5 years?
5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BNS has high quality earnings.
Growing Profit Margin: BNS's current net profit margins (29.5%) are lower than last year (31%).
Past Earnings Growth Analysis
Earnings Trend: BNS's earnings have grown by 5.2% per year over the past 5 years.
Accelerating Growth: BNS's earnings growth over the past year (1.8%) is below its 5-year average (5.2% per year).
Earnings vs Industry: BNS earnings growth over the past year (1.8%) underperformed the Banks industry 5.3%.
Return on Equity
High ROE: BNS's Return on Equity (12.7%) is considered low.
Next Steps
Financial Health
How is Bank of Nova Scotia's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: BNS has a low level of unsold assets or inventory.
Debt Coverage by Assets: BNS's debt is covered by short term assets (assets are 2.2x debt).
Financial Institutions Analysis
Asset Level: BNS's level of assets compared to its equity is moderate.
Allowance for Bad Loans: BNS has a sufficient allowance for bad loans.
Low Risk Liabilities: BNS's liabilities are made up of primarily low risk sources of funding.
Loan Level: BNS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: BNS's loans are broadly funded by customer deposits.
Level of Bad Loans: BNS has an appropriate level of bad loans (0.8%)
Next Steps
Dividend
What is Bank of Nova Scotia's current dividend yield, its reliability and sustainability?
6.57%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: BNS's dividend (6.57%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).
High Dividend: BNS's dividend (6.57%) is low compared to the top 25% of dividend payers in the Canadian market (8.69%).
Stability and Growth of Payments
Stable Dividend: BNS's dividends per share have been stable in the past 10 years.
Growing Dividend: BNS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.6%), BNS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Brian Porter (61yo)
6.25s
Tenure
CA$12,633,496
Compensation
Mr. Brian Johnston Porter serves as President and Chief Executive Officer of Bank of Nova Scotia (the “Bank”). He joined bank in 1981. He served as the Bank’s Chief Risk Officer from 2005 to 2008, as Group ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD8.93M) is above average for companies of similar size in the Canadian market ($USD6.78M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.25yrs | CA$12.63m | 0.011% CA$7.5m | |
| Group Head & CFO | 1.83yrs | CA$3.25m | 0.0012% CA$797.5k | |
| Strategic Advisor to the CEO | 6.25yrs | CA$7.19m | 0.0049% CA$3.3m | |
| Group Head of International Banking & Digital Transformation | 4yrs | CA$5.97m | 0.00016% CA$106.3k | |
| Group Head of Canadian Banking | 0.67yr | CA$3.85m | 0.0012% CA$777.6k | |
| Executive VP & Country Head of Scotiabank Mexico | 0.67yr | CA$5.02m | no data | |
| Executive Vice President of Global Operations | 0.67yr | no data | no data | |
| Co-Group Head of Global Banking & Mkts and Head of Global Corp & Investment Banking | no data | no data | 0.00056% CA$372.2k | |
| Group Head of Technology & Operations | 3yrs | no data | 0.000040% CA$26.6k | |
| Senior Vice President of Investor Relations | 1.58yrs | no data | no data |
1.8yrs
Average Tenure
Experienced Management: BNS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.25yrs | CA$12.63m | 0.011% CA$7.5m | |
| Independent Director | 8.25yrs | CA$434.74k | 0.00015% CA$99.7k | |
| Independent Director | 3.83yrs | CA$285.00k | 0.00048% CA$319.0k | |
| Independent Chairman of the Board | 0.83yr | CA$373.19k | 0.0052% CA$3.4m | |
| Independent Director | 11.83yrs | CA$235.00k | 0.00016% CA$106.3k | |
| Independent Director | 4.67yrs | CA$459.38k | 0.00011% CA$73.1k | |
| Independent Director | 3.83yrs | CA$263.06k | 0.00067% CA$445.3k | |
| Independent Director | 6.42yrs | CA$393.04k | 0.00012% CA$79.8k | |
| Independent Director | 6.17yrs | CA$416.42k | 0.00021% CA$139.6k | |
| Independent Director | 5.58yrs | CA$244.64k | 0.00026% CA$172.8k |
5.9yrs
Average Tenure
58.5yo
Average Age
Experienced Board: BNS's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BNS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Bank of Nova Scotia's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Bank of Nova Scotia
- Ticker: BNS
- Exchange: TSX
- Founded: 1832
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: CA$66.462b
- Shares outstanding: 1.21b
- Website: https://www.scotiabank.com
Number of Employees
Location
- The Bank of Nova Scotia
- Scotia Plaza
- 44 King Street West
- Toronto
- Ontario
- M5H 1H1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BNS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| BNS | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| 0UKI | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Dec 1972 |
| BNS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Dec 1972 |
| BKN | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
| BNS.PRD | TSX (The Toronto Stock Exchange) | PFD SER 31 FLT | CA | CAD | Apr 2015 | |
| BNS.PRG | TSX (The Toronto Stock Exchange) | PFD SER 36 | CA | CAD | Mar 2016 | |
| BNS.PRH | TSX (The Toronto Stock Exchange) | NON CUM 5 PFD 38 | CA | CAD | Sep 2016 | |
| BNS.PRI | TSX (The Toronto Stock Exchange) | NON CUM PFD 40 | CA | CAD | Oct 2018 |
Biography
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Banking and Markets, and Global Wealth Management segments. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small businesses and commercial customers, including automotive financing solutions to dealers and their customers. It is also involved in the provision of wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides Internet, mobile, and telephone banking services. The company operates a network of 950 branches and approximately 3,650 automated banking machines in Canada; and approximately 1,900 branches and 5,500 ATMs internationally, as well as contact centers. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:56 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2019/10/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.