The Successful Investor Hotline – Friday, June 4, 2010

Article Excerpt

BANK OF NOVA SCOTIA, $49.23, Toronto symbol BNS, rose 3% this week after the bank reported higher earnings and revenue in its latest quarter. In the three months ended April 30, 2010, Bank of Nova Scotia earned a record $1.1 billion, or $1.02 a share. That’s up 25.8% from $872 million, or $0.81 a share, a year earlier. The latest earnings also beat the consensus estimate of $0.91 a share. Revenue rose 7.7%, to $3.9 billion from $3.7 billion. Most of the earnings increase came from the Canadian retail-banking division, which supplies 45% of the bank’s total earnings. This division’s profits jumped 42.4%, mainly because low interest rates spurred demand for mortgages and personal loans. Earnings at the securities-trading division (30% of total earnings) rose 19.2%. However, the higher Canadian dollar continues to hurt earnings at the international division (25% of total earnings). As a result, the international division’s earnings fell 13.3%. Thanks to the improving economy, Bank of Nova Scotia is…