December 3, 2023

Investment Banking

Let Your Investment Banking Do The Walking

Bank of Nova Scotia: A Look at its Business Operations and Analyst Ratings in 2023

June 7, 2023 – The Bank of Nova Scotia (NYSE:BNS) (TSE:BNS), widely known as Scotiabank, is a Canadian multinational banking institution that offers personal, commercial, corporate, and investment banking services. It operates primarily in Canada, the Caribbean, and Latin America through its various subsidiaries and affiliates.

According to Bloomberg Ratings report published on June 7th, the stock is presently covered by thirteen analysts with an average rating of “hold.” Six analysts have recommended holding onto the stock while two researchers have rated it as “sell.” One analyst has assigned a buy rating to the company.

The average 12-month price expected by analysts who issued ratings on the stock over the past year is $86.43. As per today’s data, shares of BNS opened at $49.62 on Wednesday, June 7th. The PE ratio stands at 9.75 while the PEG ratio is at 2.31. Notably, beta rates were measured at1.02.

The Bank of Nova Scotia has had a market capitalization of $59.45 billion which makes it one of Canada’s largest financial institutions operating globally.

Scotiabank operates through five business segments: Canadian Banking; International Banking; Global Wealth Management; Global Banking and Markets; and Other. The Other segment includes group treasury and smaller operating segments.

The Canadian Banking segment caters to personal and commercial customers in domestic markets against all types of loans including mortgages, credit cards and small business loans while offering convenient digital channels for mobile banking in Canada.

International banking covers significant pillars that are important for foreign nations such as lending facilities to metropolitan areas outside Canada like Latin America Caribbean (LAC), Asia Pacific (APAC) etc., mainly focused towards corporations expansion abroad thereby expanding its portfolio internationally.

Global Wealth Management caters to high net worth clients globally with investment products like mutual funds etc., while Global Banking and Markets offers capital market gain opportunities for corporate clients worldwide with core services like asset securitization, structured finance facilities and debt instruments that provide significant returns to investors.

To summarize, with a globally recognized brand name and robust business operations at the heart of many economies worldwide, the Bank of Nova Scotia has established an outstanding reputation as a trusted financial institution. Its ability to offer customized financial solutions tailored to meet the unique needs of its customers has made it an attractive option for many individuals seeking personalized financial support. With its continuous evolvement of digital technology within traditional banking strategies, the future looks bright for this esteemed banking institution.

The Bank of Nova Scotia


Strong Buy

Updated on: 13/06/2023

Price Target

Current $49.24

Concensus $75.60

Low $75.60

Median $75.60

High $75.60

Show more

Social Sentiments

We did not find social sentiment data for this stock

Analyst Ratings

Analyst / firm Rating
Ebrahim Poonawala
Bank of America Securities

Show more

Bank of Nova Scotia: Ratings Downgrades and Institutional Investor Activity

Bank of Nova Scotia: Ratings Downgrades and Institutional Activity

Several brokerages have recently downgraded their ratings on Bank of Nova Scotia (BNS) and in turn, institutional investors have been either increasing or reducing their stakes in the business. Scotiabank was cut from a “buy” rating to a “hold” rating, according to a report released on February 28th. A number of other brokerages, including Royal Bank of Canada, Canaccord Genuity Group, and Barclays, also lowered their target prices or ratings for BNS.

Meanwhile, institutional investors have been adjusting their holdings in BNS. Coston McIsaac & Partners increased its stake by 167.9% in the first quarter alone. Massmutual Trust Co. FSB ADV and Endurance Wealth Management Inc. both lifted their holdings by over 300% while HBC Financial Services PLLC purchased a new stake in Bank of Nova Scotia worth about $30,000.

In terms of dividends, Bank of Nova Scotia announced an increase from its previous quarterly dividend with payments set to be made on Thursday, July 27th to investors on record as of Wednesday, July 5th. The new dividend amount will be $0.7851 per share compared to the previous amount of $0.77 per share. This represents an annualized yield of 6.33% and a payout ratio of just under 60%.

The reasons for the recent downgrades are varied but many analysts point to concerns about competition within the sector and growth prospects moving forward. Interestingly however, despite these downsides there are still ample opportunities for savvy investors looking to make strategic investments in banking stocks such as Bank of Nova Scotia.

In conclusion, while it is important to note that any investment decision requires thorough research into all aspects including earnings and financial statements etc., there are some good opportunities available within BNS at present which could provide decent returns for investors who are willing to do their homework.