Topic: How To Invest

The Successful Investor Hotline – Friday, August 26, 2022

Article Excerpt

BANK OF NOVA SCOTIA, $74.80, Toronto symbol BNS, remains a buy. The stock dropped 5% this week after it reported weaker-than-expected quarterly results. In its fiscal 2022 third quarter, ended July 31, 2022, Bank of Nova Scotia set aside $412 million to cover future loan losses. That’s up 8.4% from $380 million a year earlier. If you exclude unusual items, the bank’s earnings in the quarter rose 3.0%, to $2.52 billion from $2.45 billion. Due to fewer shares outstanding, per-share earnings gained 4.5%, to $2.10 from $2.01. However, that fell short of the consensus estimate of $2.11 a share. Thanks to rising interest rates, earnings at the Canadian banking operations (47% of the total) rose 12.4% in the quarter while earnings at the international banking business (24%) gained 28.0%. However, earnings at the wealth management operations (15%) dipped 3.5% due to lower assets under management. As well, earnings from securities trading (14%) fell 26.3% on lower trading volumes. Overall revenue in the quarter rose 0.5%, to…