The Successful Investor Hotline – Friday, June 3, 2011

Article Excerpt

BANK OF NOVA SCOTIA, $58.48, Toronto symbol BNS, reported better-than-expected earnings this week. That’s mainly because it is putting less money aside to cover bad loans because of the improving economy. The bank also saw strong gains at its international-banking and wealth-management operations. In the three months ended April 30, 2011, Bank of Nova Scotia earned $1.5 billion. That’s up 40.7% from $1.1 billion a year earlier. Earnings per share rose 33.3%, to $1.36 from $1.02, on more shares outstanding. The latest earnings included a one-time gain of $286 million, or $0.26 a share. That’s mostly because new accounting rules forced the bank to revalue its original 18% stake in DundeeWealth Inc. in connection with its recent purchase of the remaining 82% of this company. DundeeWealth manages investments and operates a brokerage business. It also owns the Dynamic family of mutual funds, and provides financial-planning and investment advice. Without this gain, Bank of Nova Scotia would have earned $1.10 a share…