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The Bank of Nova Scotia (Scotiabank) has announced plans to exit nine countries and sell multiple insurance operations amid a major business shake-up.
According to Thomson Reuters, the Canadian banking giant said it will refocus its business in the Caribbean region by selling its insurance operations in Jamaica and Trinidad & Tobago to Sagicor Financial Corporation. After the sale, Scotiabank will partner with Sagicor Financial to sell insurance in those countries.
Scotiabank also plans to sell multiple banking operations in Anguilla, Antigua, Dominica, Grenada, Guyana, St Kitts & Nevis, St Lucia, St Maarten, St Vincent & the Grenadines to Republic Financial Holdings.
The news of Scotiabank’s Caribbean twist follows the bank’s fourth-quarter (Q4) earnings report, which fell short of analyst expectations. The Toronto-based bank earned $2.27 billion in Q4, up from $2.07 billion in the same period last year. However, the adjusted diluted earnings per share ($1.77) fell shy of analysts’ expectations of $1.79.
Scotiabank’s Q4 results were fuelled by the bank’s international business, which increased earnings by more than 21% in the quarter to reach $804 million. Reuters attributes the bank’s international success to growth in the Pacific Alliance trading bloc which comprises Peru, Mexico, Chile and Columbia, which makes up around 25% of Scotiabank’s revenues.
