![]() Investors will likely get more information about Bank of Nova Scotia’s strategic review when the fiscal Q4 results come out and at the investor presentation planned for December. Several senior roles already have new faces as part of a management overhaul. This is largely in line with what the other large Canadian banks are doing as they look for ways to trim expenses and make operations more efficient.Ī new chief executive officer took charge at Bank of Nova Scotia this year. In the coming quarters, investors should expect to see the trend continue across the bank sector.īank of Nova Scotia recently announced plans to cut roughly 3% of its workforce to adjust to the current market conditions. Bank of Nova Scotia nearly doubled its provision for credit losses to more than $800 million in the fiscal third quarter (Q3) of 2023 compared to the same period last year. Higher borrowing costs that are designed to reduce consumer and business spending could eventually lead to a severe recession, as people burn through savings to cover increases in their loan payments and mortgage rates.Ĭracks are already appearing in the loan books. They worry that the central banks have hiked interest rates too much and will keep them elevated for too long. Investors aren’t convinced this will be the case. In the ideal scenario, the central banks will be able to get inflation back down to their 2% target without sending the economy into a deep downturn. Federal Reserve are increasing interest rates as a tool to try to reduce inflation by slowing down the economy. The decline is largely the result of rising interest rates in Canada and the United States. ![]() Bank of Nova Scotia Stockīank of Nova Scotia trades for close to $56 per share at the time of writing compared to $93 in early 2022. Contrarian investors seeking high dividend yields and a shot at decent potential capital gains are wondering if BNS stock is now oversold and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio. Written by Andrew Walker at The Motley Fool Canadaīank of Nova Scotia ( TSX:BNS) is down 14% in 2023 and just hit a low not seen since the fall of 2020. ![]()
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