Canaccord Genuity Believes BNS Won’t Stop Here

Canaccord Genuity analyst Gabriel Dechaine reiterated a Buy rating on Bank Of Nova Scotia (NYSE: BNS) today. The company’s shares closed yesterday at $52.86, close to its 52-week high of $54.08.

Dechaine wrote, “We estimate operating leverage was 2%. Loan growth was 3% YoY, as growth in commercial (+6% YoY), personal (incl. credit cards) (+8% YoY), was offset by low growth in resi mortgages (+3% YoY, excl. Tangerine run-off). Low growth in mortgages may be viewed as a positive, though. NIM was up 1bps QoQ. International Banking. Earnings were up 9% YoY. On a constant currency basis, segment loans were up 11% YoY. NIM was up 10bps QoQ. PCLs ratio was down 24bps QoQ and in-line to our forecast, indicating that elevated level of losses during Q2/16 from large oil & gas losses were “one-offs”. Operating leverage was 2%. Global Wealth Management. Earnings were up 5% YoY and up 6% QoQ. Scotia Capital. Earnings were up 12% YoY and up 30% QoQ. Trading revenues of $381M (consolidated) compared to our $275M forecast.”

According to, Dechaine is a 3-star analyst with an average return of 3.0% and a 62.3% success rate. Dechaine covers the Financial sector, focusing on stocks such as Canadian Bank of Commerce, Manulife Financial Corp, and National Bank of Canada.

Bank Of Nova Scotia has an analyst consensus of Moderate Buy.

The company has a one year high of $54.08 and a one year low of $35.01. Currently, Bank Of Nova Scotia has an average volume of 819.3k.

The Bank of Nova Scotia operates as a diversified financial services institution that provides a wide range of financial products and services to retail, commercial and corporate customers. Its businesses are grouped into four segments: Canadian Banking; International Banking; Global Wealth & Insurance; and Global Banking & Markets. The Canadian Banking segment provides a full suite of financial advice and banking solutions to personal and business customers across Canada. The International Banking segment encompasses retail and commercial banking operations in Latin America, the Caribbean and Central America, and Asia regions. The Global Wealth & Insurance segment combines the bank’s wealth management and insurance operations, and Global Transaction Banking. The Global Banking & Markets segment provides corporate lending, equity and debt underwriting, and mergers and acquisitions advisory services, as well as capital markets products and services, such as fixed income, derivatives, prime brokerage, securitization, foreign exchange, equity sales, trading and research, energy and agricultural commodities. The bank was founded on March 30, 1832 and is headquartered in Toronto, Canada.