May 25, 2013
Scotiabank (TSX: BNS, NYSE: BNS), formally known as The Bank of Nova Scotia, is one of Canada's Big Five banks - the third largest bank in Canada by assets (behind the Royal Bank Of Canada (RY) and Toronto-Dominion Bank (TD)), and the second largest by market capitalization (behind Royal Bank of Canada).[1] It is also the country's most international bank, having over 1,850 branches in 48 countries.[2] Unlike its competitor, Royal Bank of Canada, Scotiabank has avoided banking operations in the United States. Instead, it has built a network in the Caribbean, Central America, and Mexico.[1]
Scotiabank, like the rest of the Canadian banks, was negatively affected by the 2008 Financial Crisis. For FY 2008, the bank wrote down 1,211m before taxes. Decline in Collateralized debt obligation (CDO) valuations led to $516 million in writedowns. BNS was also one of Lehman Brothers' creditors, so LEH's downfall cost BNS upwards of $120 million.
(Read more at Wikinvest
) - Company Overview
- Business and Financial Metrics
- Income/Revenue Sources
- Interest Income (65% of revenue)
- Non-Interest Income (35% of revenue)
- Business Segments
- Canadian Banking (40% of 2009 net income)[8]
- International Banking (29% of 2009 net income)[8]
- Scotia Capital (31% of 2009 net income)[8]
- Trends and Forces
- BNS was Exposed to the Collapse of Lehman and is Suffering Because of the 2008 Financial Crisis
- Canadian Banks are Seen as Less Risky than American Banks
- Canada Requires that their Banks Maintain Tier 1 Capital Ratio%.
- Flucuations in the Canadian Dollar (CAD) impacts operating revenue and net income.
- Competition
- Comparing the Big Five
- Write-downs
- Market Share
- Financial Services
- References
