The Bank of Nova Scotia (BNS) is one of Canada’s largest financial institutions, providing diversified banking services across Canada, the United States, Latin America, and the Caribbean. It operates through multiple segments, including Canadian Banking, International Banking, Global Wealth Management, and Global Banking & Markets.
Known for its strong dividend yield, global presence, and commitment to sustainable growth, Scotiabank has been making moves that position it as a standout stock among Canada’s Big 6 banks.
Key Business Segments & Strengths
- Canadian & International Banking
- Offers chequing/savings accounts, mortgages, and loans to retail and business clients.
- International expansion in Mexico, Chile, Peru, and Colombia continues to drive growth.
- Wealth & Asset Management
- Provides investment advisory, mutual funds, and retirement planning services.
- The segment has been expanding through digital wealth management platforms.
- Global Banking & Markets
- Offers corporate banking, capital markets, and treasury services to institutional clients.
- Strong revenue contributions from investment banking and lending operations.
Scotiabank: A Leader in Sustainability & Innovation
Scotiabank recently released its 2024 Climate & Sustainability Report, outlining ambitious plans to cut carbon emissions, expand green financing, and invest in ESG (Environmental, Social, and Governance) initiatives. The bank continues to build a strong reputation for responsible investing, appealing to ESG-conscious investors.
Additionally, the appointment of L. Felipe Bayón Pardo as President signals a focus on international expansion and growth. His experience in global markets positions Scotiabank well for continued success in Latin America and beyond.
Scotiabank vs. Other Big 6 Banks
Despite recent volatility, BNS stock remains undervalued compared to its peers. Analysts note that its price-to-earnings (P/E) ratio is lower than that of RBC and TD Bank, making it a potentially attractive buy for long-term investors.
The stock’s strong dividend yield, currently around 6.3%, makes it one of the most appealing dividend plays in the Canadian banking sector. Scotiabank has a history of consistent dividend increases, a trend that is expected to continue.
Stock Performance: Bank of Nova Scotia (BNS.TO)
| Metric | Value |
|---|---|
| 1-Year Stock Growth | +12.8% |
| Dividend Yield | 6.3% |
| Forward P/E Ratio | 10.54x |
| Price/Book Ratio | 1.26x |
📌 Bank of Nova Scotia (BNS) stock performance over the past year, showing a steady uptrend before a recent pullback. The stock remains above its 200-day moving average, signaling long-term stability.
Peer Comparison: Bank of Nova Scotia (BNS) vs. Competitors
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short % |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RY | Royal Bank of Canada | Financials | 233.60B | 0.837 | 179.30 | 128.06 | 171.52 | 163.64 | 5,494,019 | 1.48 | 0.0084 |
| TD | Toronto Dominion Bank | Financials | 149.92B | 0.818 | 87.57 | 70.87 | 82.21 | 79.73 | 43,421,453 | 7.94 | 0.032 |
| BN | Brookfield Corporation | Financials | 118.96B | 1.832 | 90.69 | 52.58 | 83.53 | 72.64 | 4,965,478 | 2.84 | — |
| BAM | Brookfield Asset Management Ltd | Financials | 112.75B | 1.857 | 90.24 | 51.07 | 80.97 | 68.10 | 2,491,875 | 1.86 | 0.0016 |
| BMO | Bank of Montreal | Financials | 103.03B | 1.098 | 151.08 | 106.54 | 142.71 | 127.95 | 11,228,429 | 3.89 | 0.019 |
| BNS | Bank of Nova Scotia | Financials | 86.55B | 1.02 | 79.04 | 58.98 | 73.53 | 70.47 | 23,918,195 | 6.28 | 0.0374 |
| CM | Canadian Imperial Bank Of Commerce | Financials | 76.63B | 1.108 | 94.48 | 61.81 | 88.90 | 81.04 | 21,289,543 | 6.81 | 0.0448 |
| MFC | Manulife Financial Corp | Financials | 72.49B | 1.018 | 45.80 | 30.32 | 43.47 | 40.19 | 40,345,472 | 4.64 | 0.0306 |
| IFC | Intact Financial Corporation | Financials | 51.79B | 0.571 | 294.35 | 213.44 | 268.87 | 255.38 | 920,211 | 2.59 | 0.0039 |
| GWO | Great-West Lifeco Inc. | Financials | 49.42B | 0.814 | 54.64 | 37.11 | 49.27 | 45.59 | 9,185,273 | 2.89 | 0.1048 |
📌This table compares Scotiabank (BNS) to its major financial sector peers. While BNS has a lower market cap than RBC and TD, its valuation metrics and dividend yield make it a compelling choice for long-term investors.
Valuation Metrics: Scotiabank (BNS.TO)
| Metric | Current | 1/31/2025 | 10/31/2024 | 7/31/2024 | 4/30/2024 | 1/31/2024 |
|---|---|---|---|---|---|---|
| Market Cap | 59.89B | 63.90B | 64.14B | 57.59B | 56.82B | 57.33B |
| Trailing P/E | 14.17 | 12.64 | 12.54 | 10.76 | 10.27 | 10.84 |
| Forward P/E | 9.90 | 10.50 | 10.25 | 9.23 | 9.53 | 9.52 |
| Price/Sales | 2.47 | 2.72 | 2.65 | 2.41 | 2.35 | 2.37 |
| Price/Book | 1.15 | 1.26 | 1.23 | 1.13 | 1.10 | 1.11 |
| Enterprise Value/Revenue | 11.76 | 11.96 | 12.03 | 12.00 | 12.17 | 12.54 |
📌This table highlights Scotiabank’s valuation trends over recent quarters, showcasing its market cap fluctuations, P/E ratios, and price-to-book value. The stock remains attractively priced relative to earnings and sales, making it an appealing option for dividend investors.
Final Thoughts: Is Scotiabank a Buy?
Scotiabank (BNS) stands out among the Big 6 banks due to its:
✔ Strong Dividend Yield – One of the highest among Canadian banks at 6.3%.
✔ International Growth Potential – Strong presence in Latin America and the Caribbean.
✔ Sustainability Initiatives – Focus on ESG and climate-friendly investments.
✔ Undervalued Stock – Trades at a lower P/E ratio than other major Canadian banks.
For long-term investors looking for a stable dividend payer with international upside, Scotiabank remains a top choice. 🚀
