The Successful Investor Hotline – Friday, March 4, 2016

Article Excerpt

BANK OF NOVA SCOTIA, $59.50, Toronto symbol BNS, reported better-than-expected results this week. It also raised its dividend. For the fiscal 2016 first quarter, earnings rose 5.1%, to $1.8 billion from $1.7 billion a year earlier. Due to fewer shares outstanding, earnings per share gained 5.9%, to $1.43 from $1.35. That beat the consensus estimate of $1.42. The bank’s revenue also beat the consensus forecast, of $6.3 billion. It rose 8.6%, to $6.4 billion from $5.9 billion. Earnings at its Canadian banking division (49% of the total) rose 7.4%. That’s partly due to a $1.7 billion deal with J.P. Morgan Chase to buy its Canadian credit card operations. This includes MasterCard and Sears Canada credit card accounts. The international division (31% of earnings) reported 20.9% higher profits, thanks to strong loan demand in Latin America and favourable currency rates. However, earnings at the securities-trading division (20%) fell 9.4% on higher loan-loss…