The Scotia increased its profit

Photo: Olivier Zuida The Duty
The net profit of the Scotia amounted to 2,07 billion for its fourth quarter ended 31 October.

Toronto — Scotiabank would like to double its market share in Chile by seizing a majority stake in a bank in chile in exchange for $ 2.9 billion, an offer that she presented while she was on Tuesday for a modest increase in its earnings for its most recent quarter.


The firm offer of the Scotia aims of the shares held by Banco Bilbao Vizcaya Argentaria SA (BBVA) in its banking business chile, BBVA Chile, and in certain of its subsidiaries. If the agreement goes ahead, it will increase the share of the chilean market of the Scotia at 14% and will make the lender’s canadian the third bank is not a state in this country. According to the Scotia, this transaction is in line with its strategy to increase its presence in the banking sector in chile and in the countries of the Pacific Alliance, which also includes Mexico, Peru, and Colombia.


BBVA holds 68.2% of BBVA Chile — which has $ 29 billion in assets, as well as 4000 employees and 127 branches, while 31.6 per cent is owned by the family Said. The Scotia has added that BBVA was willing to accept the agreement if its minority partner, the family Said, did not exercise its right of first refusal provided for by the agreement of the shareholders.


The offer to purchase has been unveiled a few hours before the publication of the most recent financial results of the Scotia. It has posted a net profit of 2.07 billion for its fourth quarter ended October 31, or $ 1.64 per share, compared to a net profit of 2.01 billion, or 1.57 to $ per share, for the same period last year. Despite the modest increase in profit in the most recent quarter, the Scotia saw its net profit for its entire fiscal year to climb by almost 11 % to 8.24 billion, compared to 7.37 billion a year earlier. The return on shareholders ‘ equity has advanced 14.6 %, compared to 13.8 % last year. The earnings per share for the year 2017 has climbed from 8% to 6,49 $ compared to 6 $ in the year 2016.


The key measure of the financial health of banks, the ratio of common equity tier 1, increased to 11.5 %. If the transaction for the acquisition of the shares of BBVA Chile is concluded, this ratio will be reduced by approximately 135 basis points, said the bank.

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