Hey Amit,
So the issue with BNS is the company's international banking segment (primary latin AMerica) which is holding it back. This is why it looks to be trading at cheaper valuation than its peers. Since Latin America has recovered as effectively as North America with respect to COVID, that impacts BNS. In fact, if you read the latest report most of it includes wording that speaks to issues with the international segment.
Case in point: "Provision on impaired loans was $841 million compared to $928 million, a decrease of $87 million or 9% driven by lower commercial and corporate provisions, partially offset by higher retail provisions in International Banking driven by credit migration. " Its the second bit that is proving to be a weak point.
Of note, while BNS beat on earnings, it missed on revenue which only grew 0.4% YoY. Compare that to BMO which beat on both the top and bottom lines, and in which revenue grew by 9.4% YoY, has higher ROE and better Tier 1 ratio, and you have the reason for the contrasting day.
All this being said, there are some who think BNS offers the most upside from here since the company; international banking segment does have greater rebound potential. While true in theory, it has been a sore point with the company for years now - the pandemic just compounded the issues. In terms of valuation, it is trading at a discount to peers but inline with historical averages. All that being said, i think the discount is warranted given past performance and it is fairly valued here.
Mat