The Successful Investor Hotline – Friday, May 30, 2014

Article Excerpt

BANK OF NOVA SCOTIA, $69.63, Toronto symbol BNS, reported better-than-expected earnings this week, as gains at its Canadian banking, wealth management and securities-trading operations offset weaker earnings growth overseas. In the quarter ended April 30, 2014, the bank’s earnings rose 13.9%, to $1.8 billion, or $1.39 a share, beating the consensus estimate of $1.32. A year earlier, Bank of Nova Scotia earned $1.6 billion, or $1.22 a share. Revenue rose 9.8%, to $5.7 billion from $5.2 billion. Earnings at the Canadian banking division (which supplies 32% of the bank’s total) rose 11.4%. The gain is partly due ING Direct (now called Tangerine), which Bank of Nova Scotia bought for $3.1 billion in November 2012. Higher credit card balances and steady mortgage and car loan demand also contributed. The international division (26% of total earnings) saw its profits rise 0.2%, as higher loan demand in Asia and Latin America offset rising loan-loss provisions. The lower Canadian dollar also boosted the contribution of Bank of…