The Bank of Canada recently cut its interest rate by 0.25%, ...

The Bank of Canada recently cut its interest rate by 0.25%, and more cuts are likely before the end of the year and through 2025. This will ease the pressure on borrowers who are getting hit hard by the jump in debt expenses. Bank of Nova Scotia booked a $1 billion provision for credit losses (PCL) in the fiscal second quarter (Q2) of 2024 compared to roughly $710 million in the same period last year. Falling interest rates should help PCL level off in the next few quarters and start to decline by the end of 2025.
The bank remains very profitable and has a solid capital cushion to ride out turbulence and support the dividend. Investors who buy BNS stock at the current level can get a dividend yield of 6.8%. $Bank of Nova Scotia(BNS.CA)$