Scotiabank (TSX:BNS)(NYSE:BNS) was the first of the Big Six Canadian banks to release its third quarter fiscal 2022 earnings in the late summer season. The financial institution is sometimes called “The International Bank”, due to its huge global reach. It boasts a significant presence in Latin America.
Shares of this top bank stock have declined 16% in 2022 as of close on August 25. That pushed the bank stock into negative territory in the year-over-year period. Scotiabank has been hit hard after its earnings release. Why have investors lost faith after seeing its results?
The bank missed analyst expectations in its third quarter fiscal 2022 earnings. It reported adjusted net income of $2.61 billion or $2.10 per share – up from $2.56 billion or $2.01 per share in the second quarter of fiscal 2021. Scotia’s Canadian Banking segment posted earnings growth of 12% on the back of improved net interest income growth. Meanwhile, its International Banking earnings increased 28% from the previous year. It was also bolstered by higher net interest income.
In the year-to-date period, Scotiabank posted total revenue of $23.7 billion – up from $23.5 billion in the previous year. Meanwhile, net income was reported at $8.08 billion compared to $7.39 billion in the first nine months of fiscal 2021.
This bank stock currently possesses a very favourable price-to-earnings ratio of 9. Scotiabank last had an RSI of 38, which puts the stock just outside of technically oversold territory. It also offers a quarterly dividend of $1.03 per share. That represents a strong 5.4% yield.
