Scotiabank (TSX: BNS) sees profit rise to $2.7B in Q1. Buy alert?

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Scotiabank (TSX: BNS) sees profit rise to $2.7B in Q1. Buy alert?

Scotiabank (TSX: BNS) sees profit rise to $2.7B in Q1. Buy alert?
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Highlights

  • Bank of Nova Scotia (TSX: BNS), alternatively known as Scotiabank, is trending on the stock markets in the light of its latest quarter earnings results released on Tuesday morning, March 1.
  • Scotiabank noted a return on equity (ROE) of 15.8 per cent in the first quarter of fiscal 2022 compared to 14.2 per cent a year ago.
  • The financial company saw its net income grow to C$ 2.74 billion in the latest quarter, up from C$ 2.39 billion a year ago.

Bank of Nova Scotia (TSX: BNS), alternatively known as Scotiabank, is trending on the stock markets in the light of its latest quarter earnings results released on Tuesday, March 1.

Scotiabank noted a return on equity (ROE) of 15.8 per cent in the first quarter of fiscal 2022 compared to 14.2 per cent a year ago. On an adjusted basis, its ROE was 15.9 per cent in the latest quarter against 14.4 per cent in the previous-year quarter.

Also read: National Bank (TSX: NA) sees Q1 profit rise 23%. A bank stock to bag?

Let us discuss the financial performance of Scotiabank in Q1 FY2022 in detail.

Bank of Nova Scotia (TSX:BNS) Q1 FY2022 financial results

Scotiabank posted C$ 8.04 billion in total revenue in Q1 FY2022, slightly down from C$ 8.07 billion in the same period of 2021. However, the financial company saw its net income grow to C$ 2.74 billion in the latest quarter, up from C$ 2.39 billion a year ago.

Bank of Nova Scotia, consequently, increased its basic earnings per share (EPS) to C$ 2.15 in Q1 FY2022 compared to C$ 1.87 in the prior-year quarter. Its diluted EPS also jumped to C$ 2.14 in Q1 2022 from C$ 1.86 reported in the same quarter a year ago.

The C$ 111-billion market cap lender said that its provision for credit losses (PCL) reduced to C$ 222 million in the latest quarter from C$ 764 million in Q1 2021.

Scotiabank (TSX: BNS) reports net profit of $2.7B in Q1. Buy alert?

The bank stated that its Canadian Banking division earned adjusted earnings of C$ 1.2 billion in Q1 this year, i.e., 32 per cent growth year-over-year (YoY). Its international banking division increased its adjusted earnings by 38 per cent YoY to C$ 552 million in the latest quarter.

Adjusted net earnings for its global wealth management segment was C$ 419 million, while that of its global banking and markets division was C$ 561 million.

Scotiabank stock performance

Stocks of Scotiabank closed at C$ 91.85 per share on Monday, February 28, with 3.82 million shares switching hands during the session.

BNS stock shot up by over 23 per cent in the past 12 months.

Bottomline

Scotiabank added that it is “well capitalized and positioned” to carry on its growth strategies, with its Common Equity Tier 1 (CET1) capital ratio standing at 12 per cent.

The lender also announced a quarterly dividend of C$ 1 per share, scheduled for payment on April 27.

Also read: Toronto-Dominion (TD) to buy First Horizon (FHN). Bank stocks to bag?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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