Scotiabank (TSX:BNS)(NYSE:BNS) stock climbed 1.11% on August 28.
Shares have climbed 4.4% in 2019 so far, but the stock has dropped 1.7% over the past month. The bank released its third quarter 2019 results on August 27.
Its Latin America footprint contributed largely to a solid quarter as profits rose 2.3% year-over-year to $1.98 billion. Adjusted income rose to $2.46 billion or $1.88 per diluted share compared to $2.26 billion or $1.76 per diluted share in Q3 2018.
Total revenue in its International Banking segment grew to $3.42 billion compared to $3.35 billion in the prior year and net income rose to $902 million over $769 million.
In domestic banking, Scotiabank benefited from asset and deposit growth, but in the year-to-date period lower gains on the sale of real estate have weighed on earnings. Scotia’s International Banking segment has seen its net income post 22% growth in the year-to-date period to $2.26 billion. This is primarily due to strong loan growth in Pacific Alliance countries.
Scotiabank announced a $0.03 increase to its quarterly dividend, now paying out a quarterly payout of $0.90 per share. This represents an attractive 5.1% yield. It still offers one of the best yields of its peers as we look ahead to September.
Shares of Scotia boast a price-to-earnings ratio of 10.4 and a price-to-book of 1.3, both in line with its peers. Its international banking division has continued to impress, and another dividend hike should be appealing to income investors. I like the stock in late August.
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