Bank of Nova Scotia (Scotiabank)

L'entreprise

Scotiabank is one of Canada's Big Six, earning across Canadian Banking, International Banking (uniquely weighted to Latin America — Mexico, Peru, Chile, Colombia), Global Wealth Management and Global Banking & Markets.

Its recent strategy has tilted capital toward North America (including a stake in KeyCorp) and higher-return markets, working to lift a return on equity that has trailed peers.

Les avantages concurrentiels

A Big Six oligopoly position with a low-cost deposit base, plus a distinctive international franchise that few Canadian peers can match.

That international tilt is both the moat and the risk: it adds growth but also emerging-market volatility.

Aperçu financier

Période déclarée la plus récente : Q2 FY2026 (ended April 30, 2026). Les chiffres reflètent la date de révision — confirmez les chiffres actuels avant d'agir.

Rendement du flux de trésorerie disponible et croissance durable

Rendement des bénéfices : ≈6.7%≈ earnings yield (trailing P/E ~14.9)

Free cash flow isn't the right lens for a bank — Scotiabank is judged on earnings yield, ROE and dividend coverage.

It is the classic higher-yield value name of the group: a below-peer ROE (~13%, but recovering fast) and a discounted multiple pair with an above-average dividend yield, so you are paid to wait on the turnaround.

Sustainable growth: as ROE recovers toward the mid-teens, retained earnings can fund high-single-digit growth — but the pace depends on Latin American macro and the Canadian credit cycle.

Voir le classement complet du rendement des bénéfices →

Valorisation et points à surveiller

BNS has long traded at a discount to RBC and often carries one of the higher dividend yields among the Big Six, reflecting a lower ROE and its emerging-market exposure.

The re-rating case rests on ROE climbing back toward peers as the North America pivot and Canadian Banking momentum (earnings up 53% YoY in Q2) play out.

Dividende

Raised the quarterly dividend C$0.04 to C$1.14 in Q2 2026; BNS typically offers one of the higher dividend yields among the Big Six, backed by a 13.3% CET1 ratio.

Risques et scénario baissier

• Latin American macro, currency and political risk in International Banking.
• ROE still trails RBC, CIBC and National Bank.
• Execution risk on the strategy refresh and North America pivot.
• Exposure to a slowing Canadian consumer and housing market.

Faits récents

Q2 FY2026 net income rose 30% to C$2.63B with ROE recovering to ~13% and Canadian Banking earnings up 53% YoY.

Verdict

The higher-yield turnaround within Canadian banks: a real discount and a fat dividend in exchange for a lower ROE and emerging-market risk. The bull case is ROE convergence toward peers; the bear case is that Latin America keeps the discount in place. Conviction: an income-plus-recovery idea, higher-risk than RBC.