Scotiabank targets Brazil

Article Excerpt

BANK OF NOVA SCOTIA, $63.68, is a buy. The lender (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $77.8 billion; TSINetwork Rating: Above Average; Divd. yield: 6.7%; www.scotiabank.com) recently announced that it was shifting its business away from under-performing Latin American markets (Mexico, Peru, Colombia and Chile). As a result, Bank of Nova Scotia now plans to earmark 90% of its capital to its main markets of Canada, the U.S. and Mexico. That’s up from 70% in the most recent fiscal year. However, the bank is open to entering other promising markets in South America. It now plans to underwrite local bonds in Brazil and offer cash-management services in that country. Unlike its other businesses in Latin America, which serve mainly retail-banking customers, this new operation caters to corporate clients. Bank of Nova Scotia is a buy. buy…