Scotiabank (BNS)

Add a New Bears Reason Company: Scotiabank (BNS) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 1 votes   BNS is the only bank that has not announced capital fundraising. Top Contributor: Andrew Liyana | Created when NYSE:BNS was $27.29 | Edit | History While not raising capital can signal that BNS is in better financial shape than its Canadian peers (the other 4 of the Big Five have announced they will raise capital), Scotiabank will have the lowest Tier 1 Capital ratio in the industry. At 9.3%, it is only 0.3% above Royal Bank of Canada at the bottom. The lower ratio potentially will limit BNS's ability to buy assets when the economy recovers. (100 character max) Cancel 100% agree 1 votes   BNS is too conservative. Top Contributor: Andrew Liyana | Created when NYSE:BNS was $27.29 | Edit | History 64% of ScotiaLine line of credit and ScotiaLine Visa portfolios are secured. Similar, management has placed emphasis on strict standards on lending. While conservatism may seem apt in this environment, it is losing market share to competitors. An uptick in the economy will mean that competitors have won new clients and will make money on their lendings. (100 character max) Cancel 0% agree 0 votes   The Global Recession will stall Canada's economy and hurt BNS. Top Contributor: Andrew Liyana | Created when NYSE:BNS was $27.29 | Edit | History The Canadian economy is centered around exports of natural resources and automotive parts. A decline in demand for these products will cause the Canadian economy to slow. Higher unemployment will lead to more loan defaults. Similar, falling commodity prices will diminish the appetite for M&A activity among energy and mining companies. (100 character max) Cancel

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