- Scotiabank (BNS -2.4%) has been on a nice run higher since the spring, so investors are using the occasion of the rare earnings miss as an excuse to lighten up.
- Alongside earnings, the lender announced a $2.9B bid for BBVA's (NYSE:BBVA) 68% stake in its Chilean unit, BBVA Chile. Chile's Said family owns 31% of BBVA Chile and has a right of first refusal on any buyout. Should it choose not to exercise, BBVA will sell to Scotiabank.
- The deal would double Scotia's market share in Chile to about 14%.
- Turning back to earnings, the miss can be laid at the feet of weak capital markets action, where profits fell 15% to $391M. CIBC's Robert Sedran: "We had been anticipating a weak close to the capital markets year for the group and, at least so far, that is what we have gotten."
- Bank of Montreal (BMO -0.3%), RBC (RY -1.1%), CIBC (CM -0.8%), TD Bank (TD -0.4%)
- Previously: Bank of Nova Scotia misses by C$0.01, misses on revenue (Nov. 28)
- Now read: The Bank of Nova Scotia 2017 Q4 - Results - Earnings Call Slides
Original article