Bank of Nova Scotia (BNS) Dividend Increase

Scotiabank

Bank of Nova Scotia (BNS) announced a dividend increase from a quarterly amount of $0.66 to $0.68, an increase of 3%. The new dividend is payable Apr 28th, 2015 for shareholders on record Apr 7, and an ex-div date of Apr 2. Scotiabank usually announces semi-annual increases, and the last increase was 3.12% in Aug 2014.

From the investor’s presentation and earnings release statement:

Solid start to the year
• Net income of $1.7 billion
• Diluted EPS of $1.35
• ROE of 14.2%
• Revenue growth of 4% from last year
• Capital position remains strong at 10.3%
• Quarterly dividend increased by $0.02 cents to $0.68

bns-q1

• Diluted EPS growth of 2% Y/Y
• Solid business performance and results to start the year
• Revenue growth of 4% Y/Y
• Asset growth primarily in business lending and personal loans
• Positive impact of FX
• Higher core banking margin
• Higher fee income, partly offset by a lower contribution from associated corporations due to CI sale
• Expenses up 3% Y/Y
• Expense growth was well contained
• Technology costs and software amortization
• Volume-related expenses from wealth management businesses and loyalty program costs
• Positive operating leverage of 1%

All three business lines contributed to a solid start to the year,” said Brian Porter, Scotiabank President and CEO. “Despite some challenging market conditions, we will continue to grow by focusing on our customers and deepening our relationships with them.

Canadian Banking had a good quarter, with net income of $815 million. There was a 4 basis point improvement in the net interest margin and solid asset and deposit growth. Wealth management earnings were strong. International Banking had earnings of $417 million. Growth in both assets and deposits was strong across all key markets, particularly in Latin America. Global Banking & Markets had first quarter earnings of $404 million, growth of 4%. Strong revenue growth in the equities and foreign exchange businesses, along with lower expenses, were partially offset by softer performance in investment banking. Credit quality remains high. Our capital position continues to be strong with a Common Equity Tier 1 ratio of 10.3%. The Bank’s high quality capital levels and earnings allowed the Bank to increase its quarterly dividend by 2 cents to 68 cents per share.
Around the world, various industries are managing through volatility. Part of our role as a bank is to act as a shock absorber for our customers as they experience the ebb and flow of these cycles by looking at the big picture and taking the long term view. We continue to build our business and deepen our relationships with our customers. Our asset and deposit volumes are growing and we will continue to make acquisitions in key areas and invest in new technologies to help us better serve our customers.

My portfolio consists of 25 shares of BNS, which increases my annual dividends from $66 to $68, an increase of $2.

18 thoughts on “Bank of Nova Scotia (BNS) Dividend Increase

  1. I own a bit as well. Its a modest increase but I am happy they are continuing to increase it especially with the tough year they have had. Just imagine when things are going great!

  2. Hi R2R, I hold a few shares of BNS as well. Although I love the increase, the financial sector still seems to be struggling lately. Perhaps its time I pick up more shares of the Canadian banks.

  3. I keep reading all these great things about Canadian Banks and I’m just waiting until I’ll be able to buy some shares. As soon as I figure out how I’m going to allocate/spin off my 401K, I’ll be sure to finally get me a piece of this seemingly great sector. Thanks for the update and glad to see you’re benefiting.

    – HMB

    • Theres plenty of time to get in on the banks….like ive said before, the banks are facing some headwinds in the Canadian economy, so averaging in over the next few months is probably a better move than going all in at once.

      Best wishes
      R2R

  4. JC says:

    R2R,

    Do you have a dividend payment history for BNS dating back to 2002? On the investor relations site it has the dividends listed in CAD but I notice there’s dividend decreases back in ’03 and’04. I’m assuming they were special dividends. I know there was a stock dividend in there as well. Trying to compile the data for my dividend growth spreadsheet. Thanks. Well, especially since I just purchased some shares this afternoon. Glad to be a fellow owner.

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