Updates on Bank of Nova Scotia and Loblaw Companies

Article Excerpt

BANK OF NOVA SCOTIA $32.13 (Toronto symbol BNS: Shares outstanding: 992 million; Market cap: $31.9 billion; SI Rating: Above Average) has reported higher earnings for its first quarter, which ended January 31, 2009, despite a 153% jump in loan losses. The bank’s overall earnings rose 0.8%, to $842 million from $835 million a year earlier. Because it paid higher dividends to its preferred shareholders, earnings per share fell 2.4%, to $0.80 from $0.82. (Bank of Nova Scotia subtracts dividends paid to preferred shareholders before it calculates its per-share earnings.) Revenue rose 18%, to $3.35 billion from $2.8 billion. The lower Canadian dollar in the latter half of 2008 lifted the contribution from the bank’s international operations, which provide about a third of its revenue. Better results from its trading division and more revenue from fee-based services, like wealth management, also helped increase revenue. Bank of Nova Scotia’s trading division holds U.S.-dollar denominated securities, which benefited from a lower Canadian dollar. The trading operations…

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