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Highlights
- Bank of Nova Scotia (TSX:BNS) reported a notable jump in its net income for the third quarter of fiscal year 2021.
- The rise in its profits for the latest quarter appeared to have been triggered by the substantial drop in its provisions for credit losses (PCL).
- The results came out, BNS stocks traded in the green territory at C$ 80.23 on Monday (8.23AM EST).
As the earnings season for the big six banks in Canada kicked off on Tuesday, August 24, the Bank of Nova Scotia (TSX:BNS) reported a net income of C$ 2.542 billion for the third quarter of fiscal year 2021, up from C$ 1.304 billion in Q3 FY20.
The rise in its profits for the latest quarter appeared to have been triggered by the substantial drop in its provisions for credit losses (PCL).
Scotiabank’s PCL amounted to C$ 380 million in Q3 FY21, as against that of C$ 2.181 billion in Q3 FY20, when the major lenders in the country were handling higher bad loans amid the pandemic.
The results came out, BNS stocks traded in the green territory at C$ 80.23 on Monday (8.23AM EST).
Bank of Nova Scotia (TSX:BNS) Q3 FY21 Results
The Bank of Nova Scotia noted a return on equity (ROE) of 15 per cent in the latest quarter, which was up by 8.3 per cent year-over-year (YoY).
Its diluted earnings per share (EPS) amounted to C$ 1.99 in Q3 FY21, up from that of C$ 1.04 in the same quarter last year.
Like the Bank of Montreal announced earlier on Monday, Scotiabank has also decided to continue an unchanged dividend of C$ 0.9 apiece for the fourth fiscal quarter.
Also read: BMO Q3 profit soars by 85%, but still no dividend hike! Buy or not?
Bank of Nova Scotia Stock Performance
Stocks of Scotiabank climbed by more than 44 per cent in the last one year, clocking a 52-week high of C$ 82.35 on June 17, 2021.
The Bank of Nova Scotia stock also recorded a return of nearly 17 per cent year-to-date (YTD) and that of almost 26 per cent in the last nine months.
The bluechip stock has surged by about 50 per cent from its one-year low of C$ 53.54 (recorded on September 21, 2020).
The BNS presently holds a price-to-earnings ratio (P/E) of 12.7 and a debt-to-equity (D/E) ratio of 3.29. Its return on assets (ROA) stands at 0.69 per cent.
The Bank of Nova Scotia shares are also trending on the Toronto Stock Exchange (TSX) among the top financial and high trading volume stocks.
Bottomline
Despite the expanding numbers of the Delta variant cases, which some analysts had expected to put a dent on the top Canadian banks’ performance in the latest quarter, Scotiabank appears to have fared well in Q3 FY21.
