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Bank of Nova Scotia

LSE:0UKI
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0UKI
LSE
CA$90B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

The Bank of Nova Scotia provides various banking products and services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific. The last earnings update was 55 days ago. More info.


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0UKI Share Price and Events
7 Day Returns
0%
LSE:0UKI
1%
GB Banks
0.6%
GB Market
1 Year Returns
-7.5%
LSE:0UKI
-8.7%
GB Banks
1.1%
GB Market
0UKI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of Nova Scotia (0UKI) 0% - - -7.5% - -
GB Banks 1% 7.9% 4.8% -8.7% 17% -11.2%
GB Market 0.6% 3.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • 0UKI outperformed the Banks industry which returned -8.7% over the past year.
  • 0UKI underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
0UKI
Industry
5yr Volatility vs Market

Value

 Is Bank of Nova Scotia undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of Nova Scotia to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of Nova Scotia.

LSE:0UKI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= CA$58.17 * 14%
CA$8.14
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. CA$58.17
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0UKI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 26.5%) (178.37%))
1.248
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.248 * 5.96%)
8.67%

Discounted Cash Flow Calculation for LSE:0UKI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of Nova Scotia is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0UKI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (14% – 8.67%) * CA$58.17)
CA$3.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$3.10 / (8.67% - 1.23%)
CA$41.69
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$58.17 + CA$41.69
CA$99.86
LSE:0UKI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0UKI represents 0.97198x of TSX:BNS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.97198x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 99.86 x 0.97198
CA$97.06
Value per share (CAD) From above. CA$97.06
Current discount Discount to share price of CA$71.11
= -1 x (CA$71.11 - CA$97.06) / CA$97.06
26.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Bank of Nova Scotia is available for.
Intrinsic value
27%
Share price is CA$71.11 vs Future cash flow value of CA$97.06
Current Discount Checks
For Bank of Nova Scotia to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Bank of Nova Scotia's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Bank of Nova Scotia's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of Nova Scotia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of Nova Scotia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0UKI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in CAD CA$6.74
TSX:BNS Share Price ** TSX (2019-04-01) in CAD CA$73.16
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of Nova Scotia.

LSE:0UKI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:BNS Share Price ÷ EPS (both in CAD)

= 73.16 ÷ 6.74

10.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Nova Scotia is overvalued based on earnings compared to the GB Banks industry average.
  • Bank of Nova Scotia is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Bank of Nova Scotia's expected growth come at a high price?
Raw Data
LSE:0UKI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
6.6%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0UKI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.86x ÷ 6.6%

1.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Nova Scotia is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of Nova Scotia's assets?
Raw Data
LSE:0UKI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in CAD CA$51.01
TSX:BNS Share Price * TSX (2019-04-01) in CAD CA$73.16
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0UKI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:BNS Share Price ÷ Book Value per Share (both in CAD)

= 73.16 ÷ 51.01

1.43x

* Primary Listing of Bank of Nova Scotia.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of Nova Scotia is overvalued based on assets compared to the GB Banks industry average.
X
Value checks
We assess Bank of Nova Scotia's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of Nova Scotia has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Bank of Nova Scotia expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of Nova Scotia expected to grow at an attractive rate?
  • Bank of Nova Scotia's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Bank of Nova Scotia's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Bank of Nova Scotia's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0UKI Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0UKI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 6.6%
LSE:0UKI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 11.4%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0UKI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0UKI Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-10-31 33,314 9,372 2
2019-10-31 30,941 8,866 3
LSE:0UKI Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-01-31 26,536 -32,629 8,219
2018-10-31 26,164 -22,527 8,361
2018-07-31 25,582 -22,604 8,233
2018-04-30 25,665 -7,583 8,293
2018-01-31 25,135 -27,071 8,216
2017-10-31 24,906 -10,932 7,876
2017-07-31 24,831 -6,639 7,798
2017-04-30 24,579 -7,383 7,642
2017-01-31 24,427 -1,096 7,166
2016-10-31 23,938 -2,166 6,987
2016-07-31 23,311 -13,387 6,833
2016-04-30 22,886 -103 6,740

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of Nova Scotia's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Bank of Nova Scotia's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0UKI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Bank of Nova Scotia Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0UKI Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-10-31 7.57 7.89 6.86 7.00
2019-10-31 7.14 7.41 6.80 7.00
LSE:0UKI Past Financials Data
Date (Data in CAD Millions) EPS *
2019-01-31 6.74
2018-10-31 6.89
2018-07-31 6.84
2018-04-30 6.92
2018-01-31 6.84
2017-10-31 6.55
2017-07-31 6.47
2017-04-30 6.34
2017-01-31 5.94
2016-10-31 5.80
2016-07-31 5.68
2016-04-30 5.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Bank of Nova Scotia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Bank of Nova Scotia's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of Nova Scotia has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bank of Nova Scotia performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of Nova Scotia's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of Nova Scotia's year on year earnings growth rate has been positive over the past 5 years.
  • Bank of Nova Scotia's 1-year earnings growth is less than its 5-year average (0% vs 5.3%)
  • Bank of Nova Scotia's earnings growth has not exceeded the GB Banks industry average in the past year (0% vs 42.2%).
Earnings and Revenue History
Bank of Nova Scotia's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of Nova Scotia Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0UKI Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 26,536.00 8,219.00 13,335.00
2018-10-31 26,164.00 8,361.00 12,691.00
2018-07-31 25,582.00 8,233.00 12,382.00
2018-04-30 25,665.00 8,293.00 12,301.00
2018-01-31 25,135.00 8,216.00 12,143.00
2017-10-31 24,906.00 7,876.00 12,272.00
2017-07-31 24,831.00 7,798.00 12,154.00
2017-04-30 24,579.00 7,642.00 11,958.00
2017-01-31 24,427.00 7,166.00 11,742.00
2016-10-31 23,938.00 6,987.00 11,610.00
2016-07-31 23,311.00 6,833.00 11,291.00
2016-04-30 22,886.00 6,740.00 11,196.00
2016-01-31 22,533.00 6,978.00 11,072.00
2015-10-31 22,107.00 6,897.00 10,836.00
2015-07-31 21,706.00 6,486.00 10,741.00
2015-04-30 22,151.00 6,986.00 10,603.00
2015-01-31 22,012.00 6,958.00 10,439.00
2014-10-31 21,901.00 6,916.00 10,386.00
2014-07-31 21,807.00 7,140.00 10,342.00
2014-04-30 20,919.00 6,510.00 10,230.00
2014-01-31 20,439.00 6,278.00 10,184.00
2013-10-31 20,011.00 6,162.00 9,833.00
2013-07-31 19,475.00 5,993.00 9,736.00
2013-04-30 19,384.00 6,302.00 9,459.00
2013-01-31 18,954.00 6,171.00 9,158.00
2012-10-31 18,394.00 5,974.00 8,933.00
2012-07-31 18,110.00 5,696.00 8,652.00
2012-04-30 17,048.00 4,959.00 8,433.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of Nova Scotia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of Nova Scotia used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of Nova Scotia improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of Nova Scotia's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of Nova Scotia has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bank of Nova Scotia's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of Nova Scotia's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of Nova Scotia Company Filings, last reported 2 months ago.

LSE:0UKI Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 69,166.00 159,989.00 310,732.00
2018-10-31 67,680.00 144,922.00 295,221.00
2018-07-31 67,334.00 122,171.00 256,608.00
2018-04-30 63,135.00 128,565.00 279,571.00
2018-01-31 61,187.00 134,373.00 281,076.00
2017-10-31 61,625.00 135,978.00 281,528.00
2017-07-31 57,918.00 139,303.00 286,054.00
2017-04-30 59,799.00 143,621.00 293,602.00
2017-01-31 57,832.00 147,601.00 280,104.00
2016-10-31 57,821.00 147,103.00 281,075.00
2016-07-31 55,304.00 148,016.00 309,891.00
2016-04-30 53,826.00 157,199.00 308,922.00
2016-01-31 55,655.00 151,100.00 320,741.00
2015-10-31 53,479.00 128,467.00 295,163.00
2015-07-31 52,961.00 132,814.00 315,122.00
2015-04-30 50,943.00 139,423.00 304,658.00
2015-01-31 51,181.00 142,020.00 313,314.00
2014-10-31 49,211.00 130,262.00 292,655.00
2014-07-31 48,446.00 126,974.00 282,742.00
2014-04-30 47,457.00 122,159.00 281,543.00
2014-01-31 47,359.00 125,945.00 276,534.00
2013-10-31 45,387.00 126,490.00 252,353.00
2013-07-31 45,327.00 124,148.00 256,314.00
2013-04-30 44,207.00 122,801.00 270,940.00
2013-01-31 42,964.00 114,578.00 254,539.00
2012-10-31 41,379.00 119,568.00 227,987.00
2012-07-31 38,486.00 109,000.00 236,720.00
2012-04-30 36,667.00 98,026.00 238,110.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of Nova Scotia has an acceptable proportion of non-loan assets held.
  • Bank of Nova Scotia's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of Nova Scotia are broadly funded by customer deposits.
  • Bank of Nova Scotia's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Bank of Nova Scotia has a low allowance for bad loans.
  • Bank of Nova Scotia has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of Nova Scotia's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of Nova Scotia has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Bank of Nova Scotia's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.76%
Current annual income from Bank of Nova Scotia dividends. Estimated to be 4.99% next year.
If you bought CA$2,000 of Bank of Nova Scotia shares you are expected to receive CA$95 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of Nova Scotia's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Bank of Nova Scotia's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0UKI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0UKI Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-10-31 3.77 9.00
2019-10-31 3.55 10.00
LSE:0UKI Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 3.480 4.827
2018-11-27 3.400 4.711
2018-08-28 3.400 4.652
2018-05-29 3.280 4.296
2018-02-27 3.280 4.146
2017-11-28 3.160 3.909
2017-08-29 3.160 3.916
2017-02-28 3.040 3.920
2016-11-29 2.960 3.822
2016-08-30 2.960 4.178
2016-05-31 2.880 4.388
2016-03-01 2.880 4.579
2015-12-01 2.800 5.042
2015-08-28 2.800 4.675
2015-05-29 2.720 4.295
2015-03-03 2.720 4.203
2014-12-05 2.640 4.094
2014-08-26 2.640 3.798
2014-05-27 2.560 3.561
2014-03-04 2.560 3.911
2013-12-06 2.480 3.905
2013-03-05 2.480 4.177
2012-12-07 2.280 3.905
2012-08-28 2.280 4.229
2012-05-29 2.200 4.205
2012-03-06 2.200 4.067
2011-12-02 2.050 3.970
2011-08-30 2.080 4.035
2011-05-31 2.080 3.747
2011-03-08 2.080 3.574
2010-12-03 1.960 3.413
2010-08-31 1.960 3.636
2010-06-01 1.960 3.883
2010-03-09 1.960 3.862
2009-12-08 1.960 4.147
2009-08-28 1.960 4.158
2009-05-28 1.960 4.590
2009-04-23 1.960 5.460

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bank of Nova Scotia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Bank of Nova Scotia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of Nova Scotia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of Nova Scotia has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Bank of Nova Scotia's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Porter
COMPENSATION CA$13,250,990
AGE 60
TENURE AS CEO 5.4 years
CEO Bio

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 Head of Risk & Treasury from 2008 to 2010 and as Group Head of International Banking from 2010 to 2012. He has been President of bank since November 2012 and has been Directors since April 9, 2013. He assumed the role of Chief Executive Officer in November 2013. He has been actively involved with many industry, educational, community, health and arts organizations. His current board memberships include the Business Council of Canada, the Council of the Americas, and the Washington-based Institute of International Finance (IIF), where he serves as Vice Chairman and Treasurer. He is also the Chair of the University Health Network (UHN) Board of Trustees. He earned a Bachelor of Commerce degree from Dalhousie University, and was awarded an Honorary Doctor of Laws (LLD) degree from Dalhousie University in 2008. He is a graduate of the Advanced Management Program of the Harvard Business School.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year.
  • Brian's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Bank of Nova Scotia management team in years:

2.3
Average Tenure
  • The tenure for the Bank of Nova Scotia management team is about average.
Management Team

Brian Porter

TITLE
President
COMPENSATION
CA$13M
AGE
60
TENURE
5.4 yrs

Raj Viswanathan

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
TENURE
0.9 yrs

James O’Sullivan

TITLE
Group Head of Canadian Banking
COMPENSATION
CA$5M
TENURE
5.4 yrs

Phil Thomas

TITLE
Executive VP & Chief Retail Risk Officer
COMPENSATION
CA$235K
TENURE
5 yrs

Nacho Deschamps

TITLE
Group Head of International Banking & Digital Transformation
COMPENSATION
CA$6M
TENURE
3.2 yrs

Dan Rees

TITLE
Group Head of Operations
TENURE
2.4 yrs

Michael Zerbs

TITLE
Group Head & CTO
TENURE
2.2 yrs

Phil Smith

TITLE
Senior Vice President of Investor Relations
TENURE
0.7 yrs

Maria Theofilaktidis

TITLE
Executive VP
TENURE
1.9 yrs

Ian Arellano

TITLE
Executive VP & General Counsel
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Bank of Nova Scotia board of directors in years:

5.6
Average Tenure
59
Average Age
  • The tenure for the Bank of Nova Scotia board of directors is about average.
Board of Directors

Aaron Regent

TITLE
Chairman of the Board
COMPENSATION
CA$275K
AGE
52

Brian Porter

TITLE
President
COMPENSATION
CA$13M
AGE
60
TENURE
6 yrs

Nora Aufreiter

TITLE
Director
COMPENSATION
CA$225K
AGE
58
TENURE
4.7 yrs

Tiff Macklem

TITLE
Director
COMPENSATION
CA$459K
AGE
57
TENURE
3.8 yrs

Una Power

TITLE
Director
COMPENSATION
CA$285K
AGE
53
TENURE
3 yrs

L. Thomson

TITLE
Director
COMPENSATION
CA$235K
AGE
48
TENURE
3 yrs

Barbara Thomas

TITLE
Director
COMPENSATION
CA$235K
AGE
69
TENURE
14.6 yrs

Indira Samarasekera

TITLE
Director
COMPENSATION
CA$235K
AGE
65
TENURE
10.9 yrs

Susan Segal

TITLE
Director
COMPENSATION
CA$454K
AGE
65
TENURE
7.3 yrs

Charles Dallara

TITLE
Director
COMPENSATION
CA$393K
AGE
69
TENURE
5.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Bank of Nova Scotia insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
09. Apr 19 Buy Daniel Rees Individual 09. Apr 19 09. Apr 19 500 CA$70.88 CA$35,440
01. Apr 19 Buy Daniel Rees Individual 01. Apr 19 01. Apr 19 500 CA$71.14 CA$35,570
01. Mar 19 Buy Brian Porter Individual 28. Feb 19 28. Feb 19 7,000 CA$73.00 CA$510,999
10. Jan 19 Buy Aaron Regent Individual 27. Dec 18 27. Dec 18 7,400 CA$67.41 CA$498,772
25. Dec 18 Buy Daniel Rees Individual 24. Dec 18 24. Dec 18 1,630 CA$67.40 CA$109,845
10. Dec 18 Buy Benita Warmbold Individual 10. Dec 18 10. Dec 18 1,000 CA$71.57 CA$71,570
11. Oct 18 Sell Andrew H. Branion Individual 10. Oct 18 10. Oct 18 -546 CA$74.49 CA$-40,648
02. Oct 18 Buy Una Power Individual 01. Oct 18 01. Oct 18 3,283 CA$76.19 CA$250,121
27. Sep 18 Buy Nora Aufreiter Individual 26. Sep 18 26. Sep 18 1,500 CA$77.58 CA$116,370
13. Sep 18 Buy Brian Porter Individual 12. Sep 18 12. Sep 18 5,000 CA$75.18 CA$375,917
31. Aug 18 Buy Scott Bonham Individual 30. Aug 18 30. Aug 18 500 CA$76.07 CA$38,036
30. Aug 18 Buy Tiff Macklem Individual 30. Aug 18 30. Aug 18 190 CA$76.07 CA$14,453
12. Jun 18 Buy Michael Penner Individual 11. Jun 18 11. Jun 18 10,000 CA$75.65 CA$756,504
05. Jun 18 Buy Aaron Regent Individual 01. Jun 18 01. Jun 18 13,000 CA$76.95 CA$1,000,350
01. Jun 18 Buy L. Thomson Individual 01. Jun 18 01. Jun 18 1,900 CA$77.25 CA$146,767
X
Management checks
We assess Bank of Nova Scotia's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of Nova Scotia has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

The Bank of Nova Scotia provides various banking products and services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific. 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 related creditor insurance to individuals and small businesses; and commercial banking solutions comprising lending, deposit, cash management, and trade finance solutions to medium and large businesses, including automotive dealers and their customers. It is also involved in the provision of investment and wealth management advice, services, products, and solutions to customers and advisors; wealth management solutions, such as private customer, online brokerage, full-service brokerage, pension, and institutional customer services, as well as asset management business focusing on developing investment solutions for retail and institutional investors; and international banking services for retail, corporate, and commercial customers. In addition, the company offers corporate lending; trade finance and cash management; investment banking services, including corporate finance, and mergers and acquisitions; fixed income and equity underwriting, sales, trading, and research services; prime brokerage and stock lending services; foreign exchange sales and trading services; commodity derivatives sales and trading; and collateral management services for corporate, government, and institutional investor clients. Further, it provides Internet, mobile, and telephone banking services. The company operates a network of 955 branches and approximately 3,644 automated banking machines in Canada; and approximately 1,800 branches internationally, as well as contact and business support centers. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.

Details
Name: The Bank of Nova Scotia
0UKI
Exchange: LSE
Founded: 1832
CA$89,693,025,068
1,225,984,487
Website: http://www.scotiabank.com
Address: The Bank of Nova Scotia
Scotia Plaza,
44 King Street West,
Toronto,
Ontario, M5H 1H1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX BNS Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE BNS Common Shares New York Stock Exchange US USD 13. Dec 1972
DB BKN Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
LSE 0UKI Common Shares London Stock Exchange GB CAD 13. Dec 1972
BMV BNS * Common Shares Bolsa Mexicana de Valores MX MXN 13. Dec 1972
TSX BNS.PRG PFD SER 36 The Toronto Stock Exchange CA CAD 15. Mar 2016
TSX BNS.PRH NON CUM 5 PFD 38 The Toronto Stock Exchange CA CAD 16. Sep 2016
TSX BNS.PRD PFD SER 31 FLT The Toronto Stock Exchange CA CAD 28. Apr 2015
TSX BNS.PRI NON CUM PFD 40 The Toronto Stock Exchange CA CAD 12. Oct 2018
Number of employees
Current staff
Staff numbers
98,508
Bank of Nova Scotia employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 20:35
End of day share price update: 2019/04/01 00:00
Last estimates confirmation: 2019/04/08
Last earnings filing: 2019/02/26
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.