NYSE:BNS

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Bank of Nova Scotia

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.


Snowflake Analysis

Flawless balance sheet 6 star 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

BNS

3.8%

US Banks

1.9%

US Market


1 Year Return

-18.2%

BNS

-19.0%

US Banks

16.4%

US Market

Return vs Industry: BNS exceeded the US Banks industry which returned -20% over the past year.

Return vs Market: BNS underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

BNSIndustryMarket
7 Day3.2%3.8%1.9%
30 Day3.9%5.4%4.5%
90 Day13.3%13.7%17.6%
1 Year-13.4%-18.2%-16.1%-19.0%18.9%16.4%
3 Year-19.3%-30.2%-10.1%-17.4%44.1%34.8%
5 Year14.7%-9.1%13.8%-0.07%75.3%56.3%

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

Valuation

Is Bank of Nova Scotia undervalued compared to its fair value and its price relative to the market?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNS ($42.49) is trading below our estimate of fair value ($49.93)

Significantly Below Fair Value: BNS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BNS is good value based on its PE Ratio (9.2x) compared to the US Banks industry average (9.9x).

PE vs Market: BNS is good value based on its PE Ratio (9.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BNS is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BNS is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of Nova Scotia forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNS's forecast earnings growth (17.3% per year) is above the savings rate (2.2%).

Earnings vs Market: BNS's earnings (17.3% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: BNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: BNS's revenue (2.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BNS's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNS's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

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

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNS has high quality earnings.

Growing Profit Margin: BNS's current net profit margins (27.2%) are lower than last year (30.8%).


Past Earnings Growth Analysis

Earnings Trend: BNS's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: BNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BNS had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: BNS's Return on Equity (11.3%) 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


Financial Institutions Analysis

Asset Level: BNS's Assets to Equity ratio (17.7x) is moderate.

Allowance for Bad Loans: BNS has a sufficient allowance for bad loans (117%).

Low Risk Liabilities: 69% of BNS's liabilities are made up of primarily low risk sources of funding.

Loan Level: BNS has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: BNS's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: BNS has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

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

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BNS's dividend (6.33%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BNS's dividend (6.33%) is in the top 25% of dividend payers in the US market (4.35%)


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 (58%), BNS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNS's dividends in 3 years are forecast to be covered by earnings (51.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Brian Porter (62 yo)

6.75yrs

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 ($USD9.45M) is about average for companies of similar size in the US market ($USD11.30M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Porter
President6.75yrsCA$12.63m0.011%
CA$ 5.8m
Rajagopal Viswanathan
Group Head & CFO2.25yrsCA$3.25m0.0012%
CA$ 618.5k
James O'Sullivan
Strategic Advisor to the CEO6.75yrsCA$7.19m0.0049%
CA$ 2.5m
Ignacio Deschamps
Group Head of International Banking & Digital Transformation4.5yrsCA$5.97m0.00017%
CA$ 87.6k
Daniel Rees
Group Head of Canadian Banking1.17yrsCA$3.85m0.0012%
CA$ 603.0k
Adrián Otero Rosiles
Executive VP & Country Head of Scotiabank Mexico1.17yrsCA$5.02mno data
Tracy Bryan
Executive Vice President of Global Operations1.17yrsno datano data
James Neate
Co-Group Head of Global Banking & Mkts and Head of Global Corp & Investment Bankingno datano data0.00056%
CA$ 288.6k
Michael Zerbs
Group Head of Technology & Operations3.5yrsno data0.000040%
CA$ 20.6k
Philip Stephen Smith
Senior Vice President of Investor Relations2yrsno datano data
Maria Theofilaktidis
Executive VP3.25yrsno datano data
Ian Arellano
Executive VP & General Counsel2.58yrsno datano data

2.6yrs

Average Tenure

Experienced Management: BNS's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Porter
President6.75yrsCA$12.63m0.011%
CA$ 5.8m
Susan Segal
Independent Director8.67yrsCA$434.74k0.00015%
CA$ 77.3k
Una Power
Independent Director4.33yrsCA$285.00k0.00048%
CA$ 247.4k
Scott Bonham
Independent Director4.58yrsCA$235.00k0.00012%
CA$ 61.8k
Aaron Regent
Independent Chairman of the Board1.33yrsCA$373.19k0.0052%
CA$ 2.7m
Benita Warmbold
Independent Director1.83yrsCA$225.00k0.00025%
CA$ 128.8k
Indira Samarasekera
Independent Director12.25yrsCA$235.00k0.00016%
CA$ 82.5k
L. Thomson
Independent Director4.33yrsCA$263.06k0.00067%
CA$ 345.3k
Charles Dallara
Independent Director6.92yrsCA$393.04k0.00012%
CA$ 61.8k
Guillermo Babatz
Independent Director6.58yrsCA$416.42k0.00021%
CA$ 108.2k
Nora Aufreiter
Independent Director6yrsCA$244.64k0.00026%
CA$ 134.0k
Michael Penner
Independent Director3.17yrsCA$235.00k0.0012%
CA$ 597.9k

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: BNS's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: NYSE
  • Founded: 1832
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$68.930b
  • Listing Market Cap: CA$51.539b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNSNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
BNSTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
0UKILSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
BNS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
BKNDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
BNS.PRDTSX (The Toronto Stock Exchange)PFD SER 31 FLTCACADApr 2015
BNS.PRGTSX (The Toronto Stock Exchange)PFD SER 36CACADMar 2016
BNS.PRHTSX (The Toronto Stock Exchange)NON CUM 5 PFD 38CACADSep 2016
BNS.PRITSX (The Toronto Stock Exchange)NON CUM PFD 40CACADOct 2018
BNSP.FOTCPK (Pink Sheets LLC)NON CUM PFD 40USUSDOct 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 throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 00:28
End of Day Share Price2020/08/07 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


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.