We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Scotia Bank (BNS) Q4 Earnings & Revenues Rise, Stock Down 1%
Read MoreHide Full Article
The Bank of Nova Scotia (BNS - Free Report) reported fourth-quarter fiscal 2019 (ended Oct 31) adjusted net income of C$2.4 billion ($1.8 billion), up 2% year over year. Results exclude acquisition- and divestiture-related costs.
For fiscal 2019, net income on adjusted basis grew 3% to C$9.4 billion ($7.1 billion).
Quarterly results were mainly driven by increase in revenues, and rise in loan and deposit balances. Further, capital and profitability ratios were strong. However, higher expenses and provisions were the undermining factors. This perhaps was the reason why the company’s shares declined 1% following the release.
Adjusted Revenues, Expenses & Provisions Rise
Total revenues came in at C$8 billion ($6 billion) in the quarter, up 7% year over year. This upswing stemmed from rise in net interest and non-interest income.
For fiscal 2019, total revenues increased 8% to C$31.2 billion ($23.5 billion).
Net interest income came in at C$4.3 billion ($3.3 billion), up 3% from the prior-year quarter. Non-interest income climbed 12% to C$3.6 billion ($2.7 billion).
Non-interest expenses were C$4.2 billion ($3.2 billion), rising 6% year over year.
Provision for credit losses was C$753 million ($568.8 million), up 28% year over year. This rise mainly resulted from higher provisions in both retail and commercial portfolios.
As of Oct 31, 2019, assets under administration were up 8% from the year-ago quarter to C$558.4 billion ($424 billion). Further, assets under management increased 7% to C$301.6 billion ($229 billion).
Improving Balance Sheet
As of Oct 31, 2019, Scotia Bank’s total assets were C$1.09 trillion ($0.83 trillion), up 2% sequentially.
Deposits totaled C$733.4 billion ($556.9 billion), increasing 2%. Total loans were C$592.5 billion ($449.9 billion), up nearly 1%.
Healthy Capital and Profitability Ratios
As of Oct 31, 2019, Common Equity Tier 1 ratio came in at 11.1%, on par with the prior-year quarter level. Further, total capital ratio came in at 14.2% compared with 14.3% a year ago.
Return on equity for the fiscal fourth quarter came in at 13.3% compared with the year-earlier quarter’s 13.8%.
Our Take
A diversified product mix and strong capital position will help Scotia Bank grow organically and through acquisitions. Also, the bank’s efforts to restructure businesses through divestiture will help improve operating efficiency. However, steadily increasing operating expenses and higher credit costs remain major near-term concerns.
Bank of Nova Scotia (The) Price, Consensus and EPS Surprise
Bank of Montreal (BMO - Free Report) is scheduled to report on Dec 3, while both Canadian Imperial Bank of Commerce (CM - Free Report) and The Toronto-Dominion Bank (TD - Free Report) will announce results on Dec 5.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Scotia Bank (BNS) Q4 Earnings & Revenues Rise, Stock Down 1%
The Bank of Nova Scotia (BNS - Free Report) reported fourth-quarter fiscal 2019 (ended Oct 31) adjusted net income of C$2.4 billion ($1.8 billion), up 2% year over year. Results exclude acquisition- and divestiture-related costs.
For fiscal 2019, net income on adjusted basis grew 3% to C$9.4 billion ($7.1 billion).
Quarterly results were mainly driven by increase in revenues, and rise in loan and deposit balances. Further, capital and profitability ratios were strong. However, higher expenses and provisions were the undermining factors. This perhaps was the reason why the company’s shares declined 1% following the release.
Adjusted Revenues, Expenses & Provisions Rise
Total revenues came in at C$8 billion ($6 billion) in the quarter, up 7% year over year. This upswing stemmed from rise in net interest and non-interest income.
For fiscal 2019, total revenues increased 8% to C$31.2 billion ($23.5 billion).
Net interest income came in at C$4.3 billion ($3.3 billion), up 3% from the prior-year quarter. Non-interest income climbed 12% to C$3.6 billion ($2.7 billion).
Non-interest expenses were C$4.2 billion ($3.2 billion), rising 6% year over year.
Provision for credit losses was C$753 million ($568.8 million), up 28% year over year. This rise mainly resulted from higher provisions in both retail and commercial portfolios.
As of Oct 31, 2019, assets under administration were up 8% from the year-ago quarter to C$558.4 billion ($424 billion). Further, assets under management increased 7% to C$301.6 billion ($229 billion).
Improving Balance Sheet
As of Oct 31, 2019, Scotia Bank’s total assets were C$1.09 trillion ($0.83 trillion), up 2% sequentially.
Deposits totaled C$733.4 billion ($556.9 billion), increasing 2%. Total loans were C$592.5 billion ($449.9 billion), up nearly 1%.
Healthy Capital and Profitability Ratios
As of Oct 31, 2019, Common Equity Tier 1 ratio came in at 11.1%, on par with the prior-year quarter level. Further, total capital ratio came in at 14.2% compared with 14.3% a year ago.
Return on equity for the fiscal fourth quarter came in at 13.3% compared with the year-earlier quarter’s 13.8%.
Our Take
A diversified product mix and strong capital position will help Scotia Bank grow organically and through acquisitions. Also, the bank’s efforts to restructure businesses through divestiture will help improve operating efficiency. However, steadily increasing operating expenses and higher credit costs remain major near-term concerns.
Bank of Nova Scotia (The) Price, Consensus and EPS Surprise
Bank of Nova Scotia (The) price-consensus-eps-surprise-chart | Bank of Nova Scotia (The) Quote
Scotia Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates for Other Canadian Banks
Bank of Montreal (BMO - Free Report) is scheduled to report on Dec 3, while both Canadian Imperial Bank of Commerce (CM - Free Report) and The Toronto-Dominion Bank (TD - Free Report) will announce results on Dec 5.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>