Scotiabank Hits 52-Week Low: Should You Buy the Dip?

We are still roughly two months away from seeing the final stretch of earnings for the top Canadian banks. In the third quarter, Canada’s financial giants started showing signs of slowdown in the face of economic headwinds and an aggressive interest rate tightening policy from the Bank of Canada (BoC).

Scotiabank (TSX:BNS)(NYSE:BNS) is the fourth largest of the Big Six Canadian bank stocks by market cap. Shares of Scotiabank have plunged 26% in 2022 as of close on October 5. That has pushed the stock well into negative territory in the year-over-year period.

The bank released its third quarter fiscal 2022 earnings on August 23. It delivered adjusted net income of $2.61 billion or $2.10 per diluted share – up from $2.56 billion or $2.01 per diluted share in the prior year. Canadian Banking earnings achieved 12% growth in the year-over-year period.

Meanwhile, International Banking earnings jumped 28% compared to the third quarter of fiscal 2021. On the other hand, Global Banking and Markets saw earnings decline 26% from the prior year to $378 million.

Shares of Scotiabank currently possess a very attractive price-to-earnings ratio of 7.9. Meanwhile, it offers a quarterly dividend of $1.03 per share. That represents a tasty 6.1% yield.

Canadian banks are set to pass through a challenging period. That said, this is the perfect time to snatch up these profit machines on the dip. Scotiabank looks like one of the more attractive buy-the-dip opportunities on the TSX right now.