The Successful Investor Hotline – Friday, March 11, 2011

Article Excerpt

BANK OF NOVA SCOTIA, $57.66, Toronto symbol BNS, reported record earnings this week. That prompted the bank to raise its dividend. In its 2011 first quarter, which ended January 31, 2011, Bank of Nova Scotia earned a record $1.2 billion. That’s up 18.8% from $988 million a year earlier. Earnings per share rose 17.6%, to $1.07 from $0.91, on more shares outstanding. That beat the consensus earnings estimate of $1.06 a share. Revenue rose 5.6%, to $4.1 billion from $3.9 billion. The bank continues to set aside less money to cover bad loans because of the improving economy; that was the main reason for the higher earnings. In the latest quarter, loan-loss provisions fell 27.5%, to $269 million from $371 million a year earlier. Stronger demand for mortgages and credit cards pushed up earnings at Bank of Nova Scotia’s Canadian banking division by 14.0%, to $496 million. Earnings at the international-banking business rose 34.6%, to $342 million. That mostly reflects the acquisition…