The Successful Investor Hotline – Friday, September 9, 2011

Article Excerpt

BANK OF NOVA SCOTIA, $51.63, Toronto symbol BNS, continues to build up its operations in China. This week, Bank of Nova Scotia agreed to buy 19.99% of the Bank of Guangzhou; the Chinese government owns the remaining 80.01%. This bank is the 29th largest in China, with 84 branches. Bank of Nova Scotia will pay $719 million when the deal closes in December 2011. To put that in context, it earned $1.2 billion, or $1.11 a share, in the three months ended July 31, 2011. The bank has operated in China for the past 29 years, and has the largest presence in that country among the big five Canadian banks. This experience cuts the risk of this latest investment. Bank of Nova Scotia’s expertise should also help Bank of Guangzhou expand its earnings and market share. Bank of Nova Scotia is a buy. Bank of Nova Scotia was recently covered in the September 2011 issue of The Successful Investor. Click here…