Big gains for Scotiabank

Article Excerpt

BANK OF NOVA SCOTIA $47.52 (Toronto symbol BNS: Shares outstanding: 992 million; Market cap: $47.1 billion; SI Rating: Above Average; Dividend yield: 4.1%) reported higher earnings and revenue in its latest fiscal year. The bank earned $3.5 billion in the year ended October 31, 2009. That’s up 13.0% from $3.1 billion in the prior year. Earnings per share (excluding one-time items) rose 21.3%, to $3.70 from $3.05, on more shares outstanding. The bank’s loan-loss provisions remained high because of the weaker economy: it set aside $1.7 billion to cover bad loans in the latest fiscal year, up 169.8% from $630 million in the prior year. This figure will probably stay high until the second half of fiscal 2010. Revenue rose 21.7%, to $14.5 billion from $11.9 billion. Low interest rates continue to drive up demand for mortgages and other loans. As well, revenue from the bank’s international operations (which provide about 50% of its overall revenue) climbed 14%. However, the lower Canadian dollar…