A Top Stock on the TSX to Buy Today and Hold Forever

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) has the most global exposure among Canada’s biggest banks.

| More on:
Index funds

Image source: Getty Images

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) has the most global exposure among Canada’s biggest banks. The bank, also known as Scotiabank, has been adapting as circumstances dictate, as economies in the bank’s footprint rebound. The bank manages expenses actively and has reported significant revenue growth recently. Significant growth drivers have included outpacing the competition by growing Scotiabank’s corporate and commercial business in the Pacific Alliance, scaling Scotiabank’s wealth business in close collaboration with the bank’s global wealth management and leveraging strategic partnerships to accelerate the bank’s insurance business.

Diverse business profile

The bank has a diverse business profile. Scotiabank’s international banking division has a strong and diverse franchise with more than 10 million retail, corporate, and commercial customers. Scotiabank’s customers are served by a network of more than 1,400 branches, 5,200 automated teller machines, and 22 contact centres.

International banking continues to offer significant potential for the bank, with a geographical footprint encompassing the Pacific Alliance countries of Mexico, Colombia, Peru, Chile, as well as Central America and the Caribbean. Scotiabank believes that the Pacific Alliance countries are attractive with a combined gross domestic product that is more than double the size of Canada’s, solid macroeconomic fundamentals, attractive demographics and connectivity with Canada and the United States.

Robust strategic initiatives

As economic conditions evolved throughout fiscal 2020, Scotiabank’s international banking division deployed a series of initiatives to soften the impact of the pandemic and selectively capture opportunities. These included prioritizing the health and safety of Scotiabank’s customers and employees, assisting the bank’s customers with financial relief, prudently managing credit risk and sharpening the company’s focus on expense management, while executing Scotiabank’s long-term strategy to be a leading bank in the Americas.

Recently, the bank has accelerated its digital transformation. Scotiabank has done so by accelerating its digital offerings to lead in customer experience, optimize distribution costs, and enable sales and services capabilities. Scotiabank adopts a focused customer strategy by delivering superior customer experience and leveraging digital interaction, while deepening relationships with retail and commercial clients to achieve best-in-class customer loyalty and engagement.

Comprehensive wealth management solutions

Further, Scotiabank has enhanced the company’s winning team culture by continuing to provide employees with a safe, inclusive, and engaging work environment to attract and retain key talent, while fostering a high-performance and results-driven mindset. Scotiabank’s global wealth management division is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint.

Global wealth management serves over 1.5 million investment fund and advisory clients across 14 countries while managing over $500 billion in assets. Through organic growth and acquisitions, global wealth management has built a robust client-centric business with comprehensive advice, products, and platforms to meet a broad range of client needs.

Wide range of product offerings

In addition, Scotiabank’s global wealth management division is comprised of the several businesses. These include businesses in areas of advisory, online brokerage, mobile investment specialists, full-service brokerage, trust, private banking, and private investment counsel. Such a diverse range of product offerings is likely to serve the company well over the long term.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends BANK OF NOVA SCOTIA. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

More on Bank Stocks

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Bank Stocks

Passive Income: I’m on Track to Hit $2,000/Year

I am collecting nearly $2,000 per year in passive income via dividend stocks like the Toronto-Dominion Bank, as well as…

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Bank Stocks

Royal Bank Stock Could Fall Even More: When it Does, Buy it!

Royal Bank (TSX:RY) stock may trade in value territory, but hold off! There is likely more of a drop to…

Read more »

Investor wonders if it's safe to buy stocks now
Bank Stocks

Better Bank Buy: Bank of Montreal or Bank of Nova Scotia?

Bank of Montreal and Bank of Nova Scotia trade near 12-month lows. Are these bank stocks oversold?

Read more »

Bank Stocks

Should You Be Worried About Bank of Montreal Stock?

Bank of Montreal stock dipped 11% because of its latest U.S. acquisition. Should you be worried about your BMO holdings?

Read more »

A person suffering
Bank Stocks

Should You Be Worried About Your Canadian Bank Stocks’ Dividends?

While the big five Canadian banks are unscathed by the US banking crisis, are their dividends safe too?

Read more »

edit Woman calculating figures next to a laptop
Bank Stocks

Should You Worry About TD Bank Stock?

Toronto-Dominion Bank (TSX:TD) stock has been caught up in the banking panic, but is it really that risky?

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Passive Income: 3 Bank Stocks With Yields Over 5%

High yield bank stocks like the Canadian Imperial Bank of Commerce (TSX:CM) can provide a lot of passive income.

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Stocks for Beginners

Investors: How Do Canadian Bank Stocks Stack Up to U.S. Banks?

Here's why Canadian bank stocks could outperform their US peers.

Read more »