Should You Buy Scotiabank After Q4 Earnings?

Canada’s top bank stocks are starting to release their fourth quarter and full year earnings for fiscal 2022. Scotiabank (TSX:BNS)(NYSE:BNS) is the fourth largest of the Big Six Canadian bank stocks. It is sometimes called “The International Bank” due to its large global reach, particularly in Latin America. Today, I want to discuss whether this bank is worth buying after earnings.

The bank delivered adjusted net income of $2.61 billion or $2.06 per diluted share in the fourth quarter of fiscal 2022 – down from $2.71 billion or $2.10 per diluted share in the prior year. For the full year, adjusted net income rose to $10.7 billion or $8.50 per diluted share compared to $10.1 billion or $7.87 per diluted share for the full year in fiscal 2021.

Scotiabank’s Canadian Banking segment delivered adjusted earnings growth of 15% to $4.77 billion in 2022. This segment was powered by strong growth in residential mortgages and a 21% spike in business banking loans. Meanwhile, International Banking posted adjusted earnings of $2.44 billion – up 32% from the prior year. It was also bolstered by strong commercial and residential mortgage loan growth.


Shares of this top bank stock currently possess a very favourable price-to-earnings ratio of 8.3. Scotiabank still offers a quarterly dividend of $1.03 per share. That represents a very strong 5.9% yield. This bank stock still offers nice value and a great dividend yield after its final earnings release in 2022.