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Canadian Stocks Analysis

Transcontinental; Blueprint Transformation Toward Packaging

The Company in a Nutshell

  • TCL is the Canada’s largest printing company.
  • With the acquisition of Coveris Americas, TCL is moving toward the packaging business.
  • The company is now a leader in packaging and expect to develop new markets.

Business Model

Transcontinental Inc provides printing services in Canada and North America. The Company publishes consumer magazines and French-language educational, and community newspapers in Quebec and in the provinces of Atlantic. The largest printer in Canada, TCL is now moving its business toward packaging with the acquisition of Coveris Americas in 2018. The company operates 44 facilities employing more than 9,000 workers.

Source: TCL website

The company was evolving into a dying business (printing) and decided to proceed with a major transformation about a decade ago. The company now shows more than 50% of its revenue coming from packaging.

Source: Sep 2018 TCL presentation

Growth Vectors

Source: Ycharts

TCL hasn’t only diversified its business model in the past 10 years, it also found a way to generate more revenue. You can clearly see on the previous graph that it was about time. While revenues were on a down slope for several years, the acquisition of Coveris Americas is opening doors to new opportunities.

First, the company expects to generate economies of scale. Now that it operates an integrated platform with 21 new facilities, management plans on improving its margins as it integrates its new business.

Second, this transformational acquisition also leads to new markets for TCL. The company will now develop new market-ends such as agriculture, protein, beverages, performance packaging and advanced coating.

Finally, as the largest printer in Canada, TCL continues to optimize its printing business and generate consistent earnings. This is a continuous source of cash flow that will remain for several years. While revenue slowly decreases, TCL can use this extra cash flow to boost its packaging business.

Potential Risks

In a world where environmental values rise, we can wonder if it’s mandatory to print flyers and magazines.  For example, Montreal will debate if it’s going to allow the Publisac distribution going forward. While less people read printed publications, the environmental factor could hurt TCL business model faster than we can imagine. This is what often happens to consumer cyclical stocks; they either ride a wave or get swallowed by it. You can find better dividend paying consumer cyclical stocks here.

Source: Ycharts

TCL’s transformation toward a packaging business isn’t made without sacrifices either. The company saw its long-term debt surge by $1B following its acquisitions in 2018. The weight of this debt will not help TCL to remain competitive in a “hostile” environment where other US players may eye the company’s market shares in Canada.

TCL is at a cross-road and management must successfully integrate Coveris Americas. If new markets aren’t developed as expected, TCL will be left with not much growth vectors.

Dividend Growth Perspective

TCL has continuously increased its payout every year since 2002. In fact, TCL has been known for a shareholder friendly stock for a while now:

The company has been able to maintain a mid-single digit dividend growth rate while keeping its payout ratio well under control. Over the past 5 years, TCL showed an annualized growth rate of 5.59%.

Source: Ycharts

The price drop in 2018 led TCL to pay an interesting yield for income seeking investor. We expect TCL to continue increase its dividend by a mid-single digit growth rate going forward. With a payout ratio around 30%, there is plenty of room for TCL to increase its payments while continuing their business transformation.

TCL meets our  7 dividend growth investing principles.

Valuation

When you consider TCL major price drop from low $30’s to under $20, you may wonder if there is a deal here or if it’s a falling knife. Over the past 3 years, TCL valuation has been quite hectic going from a 5 PE ratio to as high as 12.50.

Source: Ycharts

For this reason, we rather use the dividend discount model to determine if there is an interesting entry point around $19. We used conservative dividend growth rates (5%) as we are a bit skeptical about the company’s growth vector. Since TCL contracted an important debt for its acquisitions, we used a discount rate of 10%.

Input Descriptions for 15-Cell Matrix INPUTS
Enter Recent Annual Dividend Payment: $0.84
Enter Expected Dividend Growth Rate Years 1-10: 5.00%
Enter Expected Terminal Dividend Growth Rate: 5.00%
Enter Discount Rate: 10.00%
Discount Rate (Horizontal)
Margin of Safety 9.00% 10.00% 11.00%
20% Premium $26.46 $21.17 $17.64
10% Premium $24.26 $19.40 $16.17
Intrinsic Value $22.05 $17.64 $14.70
10% Discount $19.85 $15.88 $13.23
20% Discount $17.64 $14.11 $11.76

Please read the Dividend Discount Model limitations to fully understand my calculations.

If you are expecting a 10% return on your investment, TCL price is still steep at $19. However, the company could turn things around fast if it successfully moves toward the packaging business.

Final Thoughts

TCL is the largest player in a mature (read slowly dying) industry; printing. As the world is going mobile, you can wonder who is reading printed copies these days. Fortunately for investors, management is well aware of the situation. This is why the company has performed a major transformation toward the flexible packaging industry. With the Coveris Americas transaction, TCL acquired of a strong expertise in technical film production that enabled insourcing of film manufacturing. This also helped to expand their portfolio and opened new markets. If management can achieve their transformation and generate economies of scale, TCL continues to please its shareholders with a ~4% yield.

 

If you made it this far, let’s be honest; you liked what you read. Now it’s time to make sure you don’t miss our next analysis and you subscribe to the Moose Newsletter by clicking on this link to make sure you don’t.

Disclaimer: We do not hold TCL.A.TO in our Dividend Stocks Rock portfolios.

Featured image source: Pixabay

Keyera – a Midstream in the Middle of a Big Problem

The Company in a Nutshell

  • The company spends around $1B yearly on its growth capital program.
  • KEY is a well-integrated energy company.
  • It’s heavy concentration in Alberta could be the smartest idea… or the worst.

In November 2018, Keyera missed earnings expectations with their latest quarterly report. The stock was already not doing so well, but now, it’s clearly diving down. While management tries to convince investors it will thrive in the future and reward them with juicy dividend hikes, do you think it’s the right time to invest in this midstream? Let’s take a look.

Keyera (KEY)

Source: Ycharts

Business Model

Founded in 1998, Keyera is among the largest independent midstream energy companies in Canada. It is engaged in gathering, processing, and fractionation of natural gas in western Canada; storage and transportation of crude oil and natural gas by products; and marketing of natural gas liquids. Through its business integration, KEY benefits from diversified sources of income coming from “gathering & processing”, “liquids infrastructure” and “marketing” segment.

Keyera (KEY)

Source: KEY investor presentation

As you can see, the company’s infrastructure is mostly based in Alberta. The company has enjoyed strong growth in the past, but Alberta oil sands exploitation is not that obvious anymore.

Growth Vectors

Keyera’s business model is all around oilsands and natural gas. The company has made a great job in integrating all aspect of its business to make sure it generates great margins at each step.

Keyera (KEY)

Source: KEY investor presentation

As long as there will be demand for oil sands and raw gas, Keyera will definitely surf this tailwind. Management has spent about $1B in growth project in 2018 and expect to spend about the same amount ($800M to $900M) in 2019. This should ensure strong production capacity for the years to come.

Potential Risks

Keyera doesn’t enjoy the stability of major pipelines as most of its contract is not signed for 20-25 years. Therefore, a rapid shift in the industry could affect their business model. Demand could drop and Keyera would be left with large (and costly) infrastructures not doing much. KEY could definitely suffer from overcapacity in the future.

KEY’s activities are highly concentrated around one region. If there is a shortfall in production in Alberta, KEY will pay the price of this concentration. Regulations may slow down future project as environmental concerns rise. Oil sands isn’t the cleanest energy source around, right?

Finally, KEY’s keep increasing its debt year after year for the past decade. We understand KEY needs to invest to ensure growth. However, it’s always easier raising debt when the market has a strong appetite and interest rates are low. The game rules could change in the upcoming years.

Keyera (KEY)

Source: Ycharts

Dividend Growth Perspective

With a 5%+ yield and a monthly distribution, Keyera has been on many dividend investors’ Christmas gifts list. Management has made sure to transform KEY into a shareholder friendly stock. However, its price evolution isn’t exactly going toward the same direction compared to its dividend.

Keyera (KEY)

Source: Ycharts

The market is concerned about production slowdown, its higher debt level and its ability to generate additional cash flow during a downturn. While KEY maintains a distributable cash flow payout ratio around 60-70%, we all know this could change quickly in this sector.

Keyera (KEY)

Source: KEY investor presentation

KEY’s dividend is safe and management expects to increase it by 5%/year for the next 5 years. Will they achieve this great goal? We are not 100% sure. For now, KEY meets our  7 dividend growth investing principles.  However, the situation could turn around quickly.

Valuation

After such debacle on the stock market, you may think there is a great deal waiting for you. Let’s take a look at how KEY has been valued by investors over the past 10 years:

Keyera (KEY)

Source: Ycharts

As you can see, KEY has usually been trading over a 20 PE ratio for several years. The recent PE drop could be linked to either a great opportunity or the meaning that the golden era is over.

Management intends to increase its payout by 8% over the next 5 years. We rather use more conservative numbers for our dividend discount model. We then used a 4% long term dividend growth rate and the average between the 8% KEY forecast and our 4% expectations for the first 10 years:

Input Descriptions for 15-Cell Matrix INPUTS
Enter Recent Annual Dividend Payment: $1.80
Enter Expected Dividend Growth Rate Years 1-10: 6.00%
Enter Expected Terminal Dividend Growth Rate: 4.00%
Enter Discount Rate: 10.00%
Discount Rate (Horizontal)
Margin of Safety 9.00% 10.00% 11.00%
20% Premium $52.57 $43.57 $37.15
10% Premium $48.19 $39.94 $34.06
Intrinsic Value $43.81 $36.31 $30.96
10% Discount $39.43 $32.68 $27.86
20% Discount $35.05 $29.05 $24.77

Please read the Dividend Discount Model limitations to fully understand my calculations.

Then again, there seems to have an interesting opportunity right now.

Final Thoughts

As one of the largest midstream companies in Canada, Keyera enjoys the economy of scale. The company generates profit from processing, storing, transporting and marketing crude oil and natural gas. If you are looking at a strong play on the Alberta oil sands, Keyera may be a good candidate. However, the company will live or die by the sword as such concentration could result in catastrophic outcomes in the event of a bear market. Since 2014, shares are on a downtrend. While management invests about $1B in growth projects per year (2018 and 2019), we also see debt rising. KEY’s long-term debt has doubled between 2013 and 2018 (from $1.077B to $2.252B). Proceed with caution.

If you made it this far, let’s be honest; you liked what you read. Now it’s time to make sure you don’t miss our next analysis and you subscribe to the Moose Newsletter by clicking on this link to make sure you don’t.

Disclaimer: We are long XYZ in our Dividend Stocks Rock portfolios.

 

Featured image source: Keyera Website

 

Norbord – A Dividend Built on Weak Foundation

The Company in a Nutshell

  • Norbord is the largest oriented strand board (OSB) in North America.
  • These panels are mostly used in the construction industry.
  • OSB counts on the U.S. home construction industry to grow in the upcoming years.

Dividend investors often seek to put their money in a market leader that pays now. The idea of investing in a Canadian stock providing a strong payout is tempting. After all, you get rewarded right away. Norbord (OSB.TO) presents these characteristics. The company pays a yield over 6% and is a leader in its’ market. Unfortunately, this dividend isn’t built on strong foundations. Let’s dig deeper to see what OSB is made of!

Business Model

Norbord Inc is a producer of wood-based panels. It is engaged in manufacturing, sales, marketing and distribution of panelboards and related products. OSB is the largest manufacturer of oriented strand board (OSB) in North America with over 7.1 billion square feet of capacity. Norbord is a rare basic material company paying dividend.

OSB is a type of engineered wood similar to particle board, formed by adding adhesives and then compressing layers of wood strands (flakes) in specific orientations. The company has over 15 plant locations in the United States, Europe and Canada. About 25% of its’ production capacity is in Europe.

Norbord (OSB)

Source: Norbord Q2 2018 investors presentation

Growth Vectors

Norbord (OSB)

Source: Ycharts

Norbord made a major move in 2015 with the acquisition of Ainsworth. This added over 2 billion square feet capacity and made OSB the largest manufacturer in North America. This was an all-share transaction where Ainsworth shareholders received 0.1321 of a share of Norbord for each Ainsworth share. Ainsworth is now a wholly-owned subsidiary of Norbord.

Norbord (OSB)

Source: Norbord Q2 2018 investors presentation

Norbord is not only the largest OSB producer in North America, it is also an important player in Europe too. Wherever there is housing construction, Norbord will have its’ piece of the cake. Unfortunately, Europe GDP has been anemic for the past few years. On the other side, the wind is blowing toward the right direction in the U.S.:

Norbord (OSB)

Source: Norbord Q2 2018 investors presentation

If management’s projections become true, Norbord will have two-three years of strong demand for its’ products going forward. We are far from the 2 million housing starts of 2005, but a healthy housing market is around 1 million housing start in the U.S.

Potential Risks

OSB is pretty much a one trick pony company. When the housing construction business is healthy, Norbord uses its’ gigantic capacity (the second largest producer has about 5B square feet vs 7.1B for OSB) to surf on that tailwind. However, each time there is a recession, OSB will be left with nothing. The combination of rising interest rate and high household debt level may slow down the economy faster than we expect. This would hurt housing starts and bring back OSB to darker years.

Being the largest producer in an industry is not always a plus. Norbord can run full speed and generate lots of cash flow, but can also be stuck with overproduction and suffer from several fixed costs in its’ budget. This industry suffers from overcapacity since 2006. This limits OSB price growth potential in the upcoming years. Finally, keep in mind that the juicy 6% dividend was cut not too long ago. The company is showing zero dividend growth in the past 5 years.

Dividend Growth Perspective

As mentioned in the risk section, OSB dividend growth isn’t a real one. There have been two dividend cuts in the past 5 years. Management grew its dividend back to $0.60 (from $0.10) and rewarded shareholders for their patience with a special dividend in 2018.

Norbord (OSB)

Source: Ycharts

Going forward, don’t expect much dividend growth. Shareholders may get lucky and have 2-3 years of dividend growth. But when the next recession comes, OSB may as well cut its’ dividend again. Remember; high yield – high risk.

OSB doesn’t meet our  7 dividend growth investing principles.

Valuation

While management wants us to believe the future is bright, OSB has suffered on the stock market in 2018. Unfortunately, investors don’t see much value in OSB as it trades at a very low PE ratio:

Norbord (OSB)

Source: Ycharts

Remember that a low PE doesn’t always mean that there is a deal. This may be caused by a lack of growth (or higher risk potential).

We used a 2% dividend growth rate for OSB when we ran the dividend discount model calculation. This is more than what the company gave over the past 5 years considering the dividend cut, but we believe the company could increase its’ payment in the next few years.

Input Descriptions for 15-Cell Matrix INPUTS
Enter Recent Annual Dividend Payment: $2.40
Enter Expected Dividend Growth Rate Years 1-10: 2.00%
Enter Expected Terminal Dividend Growth Rate: 2.00%
Enter Discount Rate: 10.00%
  Discount Rate (Horizontal)  
Margin of Safety 9.00% 10.00% 11.00%  
20% Premium $41.97 $36.72 $32.64  
10% Premium $38.47 $33.66 $29.92  
Intrinsic Value $34.97 $30.60 $27.20  
10% Discount $31.47 $27.54 $24.48  
20% Discount $27.98 $24.48 $21.76  

Please read the Dividend Discount Model limitations to fully understand my calculations.

Unfortunately, we don’t see how we could use strong dividend growth figures. At this point, there is no deal on OSB.

Final Thoughts

We totally understand why investors would like to invest in Norbord. The company is a leader in its’ market. Demographic should help housing construction in North America in the upcoming years. The company is paying a 6%+ yield. Is there anything to not like about this company? Unfortunately; yes. As the economy is strong, OSB looks great. Keep in mind the dividend was cut not too long ago as OSB needed additional cash to survive a weaker period. More recessions will come and OSB will be dependant on the housing market.

If you made it this far, let’s be honest; you liked what you read. Now it’s time to make sure you don’t miss our next analysis and you subscribe to the Moose Newsletter by clicking on this link to make sure you don’t.

Disclaimer: We do not hold shares of OSB.TO in our Dividend Stocks Rock portfolios.

 

Featured Image Source: Pixabay

 

Badger Daylighting; Good? Bad? I’m not Pulling the Trigger

The Company in a Nutshell

  • BAD counts on a network of over 100 locations operating over 1,000 hydrovac units.
  • As it invests continuously in its technology, BAD enjoys a first mover advantage.
  • The company is under lots of pressure by short seller Marc Cohodes.

It is not always easy to make the difference between a good and a bad company. This is exactly what is happening for the past couple of years with Badger Daylighting (BAD.TO). While the company says it’s growing and will be growing at a very fast pace, a famous short seller, Marc Cohodes (who shorted Home Capital Group (HCG.TO), is on a crusade against Badger. Is it THAT BAD? Let’s take a look.

BAD.TO, BAD, Badger DaylightingBusiness Model

Founded in1992, Badger Daylighting Ltd is a provider of non-destructive hydrovac excavation services through two methods: Badger Corporate locations and Operating Partners. The company’s technology, Badger Hydrovac System, is a truck-mounted hydrovac excavation unit. The company is part of the industrial sector, but doesn’t make our top industrial dividend stocks list.

BAD provides services to a diverse customer base including oil and gas, energy, industrial, construction, transportation and other markets, as well as numerous government agencies within Canada and the United States.

Growth Vectors

Source: Badger’s investor presentation

Badger has invested massively to develop its non-destructive excavation technology. It enjoys a massive fleet of 1,000 hydrovac units displayed across a network of over 100 locations. The company intends to use its first mover advantage to expand in U.S. territories. This strategy has worked well in the past few years as you can see in the image above.

Source: Ycharts

BAD also counts on the growing energy market. In fact, one of the reasons why BAD revenue grew that fast was mostly linked to excavation needs in the oil & gas business. Depending on where you stand, this sector could be a growing or volatile business.

Potential Risks

For one, Badger shows a cyclical business affected by seasonality. You clearly see the variation from one quarter to another. This makes it harder for BAD to manage its cash flow during the weaker quarter and always put additional hope that the “good quarters” must remain strong. The company is also over exposed to the oil & gas industry.

Unfortunately, the company is also under strong pressure by famous short seller Marc Cohodes (see affidavit). In his report, Marc highlights the absence of an explanation for lower earnings while revenue keeps growing. Management refused to explain margins contraction based on “sensible competitive information”. Most of the management team left between 2014 and 2016. Mark also questions BAD’s accounting methodologies, real number of trucks in operations and competitions coming from US companies. In other words; this doesn’t smell good.

Dividend Growth Perspective

BAD increased its dividend significantly since 2015, but keep in mind the company had to cut its payment after the 2008 financial crisis (dividend cut occurred in 2011). Are recent dividend increases been made to attract or distract investors?

While the payout ratio is very high, the company’s cash payout ratio is well in control.

Source: Ycharts

If BAD doesn’t show any accounting methodology issues and Cohodes’ concerns are not founded, we expect Badger to keep increasing its dividend going forward. Yet, this is a tricky investment for any dividend growth investors.

BAD.TO doesn’t meet our  7 dividend growth investing principles.

Valuation

Using the past 10 years PE history to have an idea of how BAD should be valued today tells us one thing: this stock is highly volatile.

Source: Ycharts

As you can see, it’s very hard to find an intrinsic value using the price-earnings standard. We also did a dividend discount model (DDM) calculations to find BAD’s value as a dividend growth stocks. Unfortunately, we came out empty-handed once again:

Input Descriptions for 15-Cell Matrix INPUTS
Enter Recent Annual Dividend Payment: $0.54
Enter Expected Dividend Growth Rate Years 1-10: 8.00%
Enter Expected Terminal Dividend Growth Rate: 5.00%
Enter Discount Rate: 10.00%
Discount Rate (Horizontal)
Margin of Safety 9.00% 10.00% 11.00%
20% Premium $21.67 $17.19 $14.21
10% Premium $19.87 $15.76 $13.03
Intrinsic Value $18.06 $14.33 $11.84
10% Discount $16.26 $12.89 $10.66
20% Discount $14.45 $11.46 $9.48

Please read the Dividend Discount Model limitations to fully understand my calculations.

At this point, Badger Daylighting doesn’t qualify as “Dividend Stocks Rock” material.

Final Thoughts

Badger has developed “exaction trucks” that are efficient and flexible. It enables to excavate in extreme winter condition. Since BAD manufactures its own hydrovac units, this gives the company a competitive edge against other competitors. However, BAD is still linked to the oil & gas industry is suffered greatly from over capacity between 2014 and 2016. Competition is heavy in the U.S. and it will put additional pressure on BAD’s margins. Finally, the fact the company is being pursued by a short seller increases BAD’s volatility on the market and raises additional questions. Would you invest in a company where you are not 100% sure management is completely honest? We keep a rating of 3 for both our PRO Rating and Dividend Safety score for those reasons.

If you made it this far, let’s be honest; you liked what you read. Now it’s time to make sure you don’t miss our next analysis and you subscribe to the Moose Newsletter by clicking on this link to make sure you don’t.

 

Disclaimer: We do not hold XYZ in our Dividend Stocks Rock portfolios.

 

TD Bank – The Canadian Bank Surfing on US Tailwinds

 

The Company in a Nutshell

  • Canadian bank revenues will increase as interest rate goes up.
  • TD’s very lean structure plays a great role in its expansion.
  • TD has a great presence in the US compared to other Canadian banks.

Business Model

TD is the second largest Canadian bank by market cap and is often playing side-by-side for the 1st position with Royal Bank (RY). TD is the most classic bank in Canada as its business model focuses a lot on retail banking. Its portfolio is well diversified between Canada (61%) and the U.S. (30%). As you can see, TD is mostly active on the US East Coast and shows no presence elsewhere.

TD markets

source: TD Q3 2018 presentation

Canadian banks are not known for their success past the Southern borders. TD is definitely the model other banks are following in that manner. TD has successfully completed several acquisition on U.S. soil and used in-branch expertise to develop their network. In other to remain competitive, TD is developing its mobile services. To this date, it now shows over 12 million clients using their mobile apps.

Growth Vectors

What we like most about TD bank is how management keeps things clean and simple. As the bulk of their business is generated through classic banking activities such as personal and commercial savings and loans, there are hardly no surprises coming from their financial statements. TD enjoys the best of both worlds. On one side, it is the largest Canadian bank in term of total assets and total deposits. It evolves in a highly regulated oligopoly protecting TD (and its peers) from outsiders. On the other side, it has understood how to grow successfully through the U.S. market. As their economy is flourishing, TD is well-established on the East Coast to Capture this tailwind.

Potential Risks

As Canadian interest rates start rising, American investors may be concerned about currency headwinds. But, in a long-term perspective, the currency effect (one way or another) doesn’t affect much an investment return.

The Canadian housing market has always been a concern since 2012, but TD seems to manage its loan book wisely. There hasn’t bee a correction in the housing market back in 2008-2010 as compared to what happened in the U.S. This is how we find very expensive housing markets among Canadian largest cities such as Toronto, Vancouver, Calgary and Edmonton. A higher insured mortgage level in the prairies seems adequate while TD continues to ride the ever-growing downtown Toronto housing market.

Dividend Growth Perspective

TD is a Canadian dividend aristocrat (which permits a “pause” in the dividend increase streak). Management prefers to increase dividend once a year and did so with a 12% increase earlier this year. You can expect the next raise in early 2019. Shareholders can expect a mid single-digit to double-digit dividend growth going forward.

Final Thoughts

A stronger economy from both countries led to TD’s stronger results. TD keeps things clean and simple as the bulk of its income comes from personal and commercial banking. It has a large exposition in major cities like Toronto, Vancouver, Edmonton and Calgary, combined with a strong presence in the US. If you are looking for an investment in a straight forward bank, TD is your pick. This banks is a good example of a perfect dividend triangle.

ScotiaBank – A Taste of Latin America


The Company in a Nutshell

  • BNS shows a 7% (CAGR) dividend growth rate over the past 10 years.
  • It is your ticket for an international bank with a solid core in Canada.
  • Recent quarters were fueled by stronger commercial loan demand from its international business.

BNS.TO

Business Model

ScotiaBank is the most international of the Canadian banks. It has built various geographic streams of income coming from Latin America and Asia (emerging markets). In fact, BNS is present in 55 countries. This is a strength other banks don’t have, especially when the Canadian economy is going through challenging periods.

Potential Risks

The bank run into several challenges such as the situation in Venezuela. It seems being present in emerging markets is not always a plus. Overall, diversification is a good strategy, but BNS international presence adds more volatility to its business model.

Dividend Growth Perspective

BNS management offered two dividend hikes in 2017. The first one brought its dividend from $0.74 to $0.76 and the next payment was of $0.79 per share. The two dividend payments come to a total of +6% increase. BNS also shows an annualized growth rate of 7% over the past 10 years.

Final Thoughts

BNS is the most innovative bank in the industry. It has done lots of business outside Canada, and always with an open mind. BNS deserves its international label with 40% of its assets outside Canadian borders. This hasn’t always been an advantage as BNS ran into its share of problems with Latin American economic struggles. However, things seem to get back on track as BNS year-end report shows EPS growth of 8% after adjustments. BNS still continues to find a solid ground in Canada with a +9% growth, but international banking (+15%) and global banking and markets (16%) are its real growth vectors. If BNS succeeds in its $2.9 billion acquisition in Chile, it will become the third largest bank of this country.

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