Bank of Nova ScotiaNYSE: BNS

Scotiabank appears to be an interesting option for safe, outsized, and steadily growing income. The Canadian bank beat the analyst consensus for revenue and adjusted EPS in its fiscal Q2. BNS' Common Equity Tier 1 capital ratio meaningfully improved during the quarter.

Canadian banks tend to have conservative businesses, but things don't always go perfectly. Toronto-Dominion is dealing with an ugly money-laundering probe that has investors worried.

The Bank of Nova Scotia (NYSE:BNS ) TD Financial Services and Fintech Summit Conference June 6, 2024 9:45 AM ET Company Participants Francisco Aristeguieta - Group Head of International Banking Conference Call Participants Mario Mendonca - TD Securities Mario Mendonca Good morning, everyone. So now we've got Francisco, Head of Scotiabank's, Group Head of Scotiabank's International Banking.

Higher provisions and an increase in non-interest expenses hurt Bank of Nova Scotia's (BNS) fiscal Q2 earnings, while a rise in revenues and loan balance offer some support.

Bank of Nova Scotia (BNS) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.25 per share a year ago.

TD Bank is dealing with U.S. regulators to resolve money laundering control shortfalls. Scotiabank is working on a business turnaround, but it doesn't face the regulatory headwinds buffeting TD Bank.

The Bank of Nova Scotia has a compelling dividend yield and is trading at an affordable price-to-earnings ratio for 2025's projected earnings. The new CEO's ambitious strategy is centered on enhancing operations in Canada, the United States, and Mexico, with a focus on boosting productivity and expanding capital-efficient businesses. Scotiabank's lackluster performance over the past ten years is largely attributed to negative market sentiment in Latin America and currency devaluation against the Canadian Dollar.

Increasing interest rates have posed a challenge for consistent dividend payers in the financial industry, but for certain dividend stocks, this is only the beginning. Scotiabank is revamping its business strategy to catch up with its competitors.

The Royal Bank of Canada offers a compelling yield, but it has significant exposure to the Canadian market. On the other hand, the Bank of Nova Scotia has a high yield that is above average, as long as you are comfortable with a potential repositioning narrative.