Scotiabank (TSX:BNS)(NYSE:BNS) is the fourth largest of the Big Six Canadian bank stocks. It is often referred to as “The International Bank” because of its significant global reach, particularly in Latin America. However, a shaky global economy has spurred Scotia to lean more on its domestic operations in the first half of this decade.
Shares of this bank stock dipped 1.55% on Tuesday, February 21. Scotiabank stock is down 21% year-over-year at the time of this writing. However, its shares have surged 10% in the year-to-date period.
The bank is set to release its first quarter fiscal 2023 earnings before markets open on Tuesday, February 28. In fiscal 2022, Scotiabank posted adjusted net income of $10.7 billion or $8.50 per diluted share. Scotiabank thrived on the back of net income growth of 15% to $4.77 billion in its Canadian Banking segment. Meanwhile, adjusted earnings in its International Banking segment surged 32% to $2.44 billion.
Canadian stocks have been hit by volatility over the past year as the Bank of Canada (BoC) has pursued an aggressive interest rate tightening policy in order to beat back inflation. That policy has started to bear fruit, which has spurred some experts to predict a pause on rate hikes. Scotiabank and its peers may have seen a decline in credit growth in this tightening cycle. However, the top banks should also experience a significant boost to their profit margins.
Scotiabank stock currently possesses an attractive price-to-earnings ratio of 8.9. Better yet, it offers a quarterly dividend of $1.03 per share. That represents a strong 5.7% yield.
