Can The Bank of Nova Scotia (USA) (BNS) Avoid a Canadian Housing Bust?

One big transaction that has helped bolster Scotiabank’s growth was its acquisition of ING Direct Canada last November. Adding millions of customers who are used to low-maintenance, self-directed banking services from ING Direct Canada’s online banking platform will help increase Scotiabank’s assets and open new cross-selling opportunity to customers that could lead to even further business. It may take time for Scotiabank to integrate its new customers fully, but they nevertheless represent a major opportunity for the bank.

In The Bank of Nova Scotia (USA) (NYSE:BNS)’s quarterly report, watch to see if the company follows TD’s lead in implementing further cost-cutting to try to improve profitability. If a downturn in housing comes from weaker prospects for the country’s resource-based economy, then investors should be confident in assessing Scotiabank’s ability to weather the storm.

The article Can Bank of Nova Scotia Avoid a Canadian Housing Bust? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends The Bank of Nova Scotia (USA) (NYSE:BNS).

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