It's disappointing that Scotia Bank has for the second year now not raised its dividend.
Comparing stock charts of BNS to NA over any period, be it 5, 10 or 20 years, NA has consistently outperformed by a long shot. Would you find a switch from BNS to NA problematic (other than the "bigger, safer.....")?
NA reported EPS of $2.58, slightly beating estimates of $2.57; revenue of $2.99B beat estimates of $2.94B. The quarter was a bit 'noisy', with better-than-expected margin expansion but worse-than-expected expense and credit issues. NA anticipates mid-single-digit EPS gains in 2025, following 2024 strength and consistent with consensus. It expects headwinds to growth in personal loans, especially in 1H, and low-double-digit commercial loan gains in 2025. This may help sustain net interest income, as the bank acknowledged variability in total margin but stability in the P&C segment. The bank will strive for positive operating leverage, putting costs in focus. Canada Western Bank deal approvals are progressing to an early-2025 close. National Bank set a higher range of 25-30 bps for its 2025 impaired loan-provision ratio, well above 2024 and rising from 4Q. This is probably what concerned investors the most. BNS's quarter was not great, and investors were not pleased with no dividend hike. We would be OK with a switch with less interest if taxes apply on a sale. BNS stock has done a bit better this year, and was hitting new highs before earnings. It is cheaper than NA so that is a partial offset.