|Bid||40.00 x 1800|
|Ask||41.44 x 1300|
|Day's range||40.21 - 40.73|
|52-week range||31.94 - 58.22|
|Beta (5Y monthly)||0.83|
|PE ratio (TTM)||7.94|
|Earnings date||06 Feb 2017 - 10 Feb 2017|
|Forward dividend & yield||2.72 (6.71%)|
|Ex-dividend date||05 Oct 2020|
|1y target est||72.27|
(Bloomberg) -- Three of Canada’s six biggest banks said Tuesday they expect most borrowers who took advantage of pandemic-related deferral programs to resume payments, countering fears of a sharp increase in impaired loans.At Bank of Nova Scotia, 99% of mortgage borrowers whose deferrals have expired are current on their payments, the lender said in a statement. Scotiabank now has C$39 billion ($30 billion) of deferral exposure, down from C$41.5 billion as of July 31, and expects the “vast majority” of its remaining balances to expire this quarter, Chief Executive Officer Brian Porter said in the statement.“We are seeing signs for optimism as household spending continues to return to more normal levels and economic output continues to regain lost ground,” Porter said.Bank of Montreal Chief Financial Officer Thomas Flynn said his bank has had a positive experience with commercial and consumer borrowers in both the U.S. and Canada who have come off deferrals and resumed payments. He said he doesn’t expect a “radically different outcome” for the loans that are still deferred.“We’re seeing the vast, vast, vast majority of customers returning to a status where they are making payments to us, and the existing deferrals will run off largely over the balance of the year,” Flynn said at a Barclays Plc conference Tuesday.Royal Bank of Canada CFO Rod Bolger said that of the mortgages that his bank has on deferral, the average loan-to-value ratio is in the mid-50s and borrowers have average FICO scores higher than 750. About 75% of the households with deferred mortgages are dual-income houses, he said.“We’re not looking at seeing a big spike in foreclosures,” Bolger said at the Barclays conference. “We expect that these mortgages, as they come off the deferral programs, to remain the homes of our clients.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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(Bloomberg) -- Bank of Nova Scotia is setting aside more money than previously planned for souring loans amid the coronavirus pandemic, indicating the lender sees a need to further shore up reserves to weather a wave of impairments.When Scotiabank reported second-quarter earnings that included a record amount for provisions in May, Chief Executive Officer Brian Porter said third-quarter set-asides would be similar. He underestimated, with the bank on Tuesday reporting provisions of C$2.18 billion ($1.65 billion), a new high, in earnings that missed analysts’ expectations.Key InsightsScotiabank set aside less than all other major Canadian lenders except Bank of Montreal for provisions in the second quarter when measured as a percentage of loans. In the third quarter, the percentage was 1.36%, compared with 1.19% in the prior quarter and 0.48% a year earlier.Canadian banking is Scotiabank’s largest division, typically accounting for more than a third of overall profit. The domestic-banking division had earnings of C$429 million in the third quarter, down 53% from a year ago as loan-loss provisions weighed on results.Scotiabank now operates in about 30 countries after spending the last six years scaling back its international reach to focus on the Americas, with an emphasis on Mexico, Peru, Chile and Colombia. The international-banking division had a C$28 million loss, compared with a profit of C$844 million a year earlier, as provisions swelled to C$1.28 billion.Scotiabank’s capital-markets division has been showing signs of a turnaround in 2020 after enduring two years of shrinking revenue and profit. That turnaround is gaining traction, with earnings rising 60% to C$600 million as trading jumped.Market ReactionScotiabank had fallen 23% this year through Monday, more than the 13% decline for Canada’s eight-company S&P/TSX Commercial Banks Index.Get MoreNet income for the three months ended July 31 fell 34% to C$1.3 billion, or C$1.04 a share.Adjusted earnings also totaled C$1.04 a share, missing the C$1.10 average estimate of 11 analysts in a Bloomberg survey.Read more about Scotiabank’s quarterly results here.(Corrects quarter in third bullet point in story published on Aug. 25.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.