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Scotia Bank (BNS) to Divest British Virgin Island Business
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As part of its efforts to improve operating efficiency, The Bank of Nova Scotia (BNS - Free Report) has inked a deal to sell 100% stake in Scotiabank (British Virgin Islands) Limited to Trinidad & Tobago-based Republic Financial Holdings Limited. The financial terms of the deal or the date of completion were not disclosed.
The transaction is still subject to regulatory approval and customary closing conditions.
In a statement, Scotia Bank management said, “This transaction supports the Bank's strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the best value for customers.”
Past Restructuring Efforts
Over the past year, Scotia Bank has undertaken several strategic measures to overcome the challenging operating backdrop. Earlier this month, the bank completed sale of its banking operations in seven Caribbean countries.
Moreover, the company has announced plans to lower stake/move away from several non-strategic markets, including Thailand, Colombia, Puerto Rico, the U.S. Virgin Islands, Dominican Republic and El Salvado. All these efforts are expected to help the bank increase share in its key markets.
Further, Scotia Bank has established Global Wealth Management (“GWM”) as a separate business division, “given its significant scale, double-digit asset growth over the last few years.” The bank expects GWM to further support its profitability.
Additionally, in July, Scotia Bank entered into a long-term bancassurance strategic alliance with BNP Paribas Cardif, the insurance unit of BNP Paribas SA (BNPQY - Free Report) . Earlier in March, it acquired 97.44% of Banco Dominicano del Progreso in the Dominican Republic and 51% stake in Banco Cencosud in Peru.
Our Take
The company faces heightening competition from other Canadian banks, including The Toronto-Dominion Bank (TD - Free Report) , Bank of Montreal, Canadian Imperial Bank of Commerce (CM - Free Report) and Royal Bank of Canada. Thus, the above-mentioned initiatives are expected to continue supporting Scotia Bank’s financials.
Shares of Scotia Bank have rallied 13.1% so far this year, outperforming the industry’s growth of 4.2%.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
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Scotia Bank (BNS) to Divest British Virgin Island Business
As part of its efforts to improve operating efficiency, The Bank of Nova Scotia (BNS - Free Report) has inked a deal to sell 100% stake in Scotiabank (British Virgin Islands) Limited to Trinidad & Tobago-based Republic Financial Holdings Limited. The financial terms of the deal or the date of completion were not disclosed.
The transaction is still subject to regulatory approval and customary closing conditions.
In a statement, Scotia Bank management said, “This transaction supports the Bank's strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the best value for customers.”
Past Restructuring Efforts
Over the past year, Scotia Bank has undertaken several strategic measures to overcome the challenging operating backdrop. Earlier this month, the bank completed sale of its banking operations in seven Caribbean countries.
Moreover, the company has announced plans to lower stake/move away from several non-strategic markets, including Thailand, Colombia, Puerto Rico, the U.S. Virgin Islands, Dominican Republic and El Salvado. All these efforts are expected to help the bank increase share in its key markets.
Further, Scotia Bank has established Global Wealth Management (“GWM”) as a separate business division, “given its significant scale, double-digit asset growth over the last few years.” The bank expects GWM to further support its profitability.
Additionally, in July, Scotia Bank entered into a long-term bancassurance strategic alliance with BNP Paribas Cardif, the insurance unit of BNP Paribas SA (BNPQY - Free Report) . Earlier in March, it acquired 97.44% of Banco Dominicano del Progreso in the Dominican Republic and 51% stake in Banco Cencosud in Peru.
Our Take
The company faces heightening competition from other Canadian banks, including The Toronto-Dominion Bank (TD - Free Report) , Bank of Montreal, Canadian Imperial Bank of Commerce (CM - Free Report) and Royal Bank of Canada. Thus, the above-mentioned initiatives are expected to continue supporting Scotia Bank’s financials.
Shares of Scotia Bank have rallied 13.1% so far this year, outperforming the industry’s growth of 4.2%.
Currently, Scotia Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
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