Scotiabank Named Canada’s Bank of the Year

Scotiabank (BNS) was named Bank of the Year in Canada by The Banker magazine, further consolidating its position as the banking industry leader in the Americas.

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This is the third year in a row that this magazine, a publication owned by the Financial Times, has presented the award to Scotiabank. The Banker also recognized the bank last August as the Most Innovative in Data.

Scotiabank received its award last night in a virtual ceremony. It has also achieved victories for its activities in the Bahamas, Barbados, the Cayman Islands and the Turks and Caicos Islands. (See Analysts’ Top Stocks on TipRanks)

Highlights of This Year’s Recognition

This year, Scotiabank was recognized for having used data and analytics to identify thousands of clients in a precarious situation in order to offer them tailor-made support and advice with regard to financial challenges caused by the pandemic. This award also underlines the bank’s leadership in relation to environmental, social and governance (ESG) issues, including the creation of its Sustainable Finance Group.

The launch of the Advice+ program, which helps financial advisors have constructive and in-depth conversations with their clients in order to offer them advice, also contributed to the bank’s victory this year.

Management Commentary

Scotiabank president and CEO Brian Porter said, “The best relationships are forged during challenging times, and I am exceedingly proud of the ways in which our winning team has supported our customers throughout this period. They have gone over and above to provide our clients with exceptional advice and a great banking experience, while delivering for our shareholders and communities.”

Analyst Recommendation

On December 1, RBC Capital analyst Darko Mihelic kept a Buy rating on BNS and raised its price target to C$99 (from C$89). This implies 16.9% upside potential.

Mihelic stated that Scotiabank fourth-quarter results were better than expected thanks to good credit performance and lower spending. The analyst added that he remains positive on the bank as its results follow higher loan growth, with other benefits coming from interest rate increases.

The rest of the Street is bullish on BNS with a Strong Buy consensus rating based on six Buys and two Holds. The average Bank of Nova Scotia price target of C$91.43 implies 7.9% upside potential to current levels.