Toronto-based Bank of Nova Scotia announced on Thursday that it’s in talks with BBVA Spain to acquire BBVA Chile, describing the discussions as non-binding and exploratory. (BBVA Spain is the controlling shareholder of BBVA Chile.)
“At this time, no formal agreement is in place and there can be no assurance that this process will result in a final agreement,” says Scotiabank in a news release.
Scotiabank has extensive operations in Latin America, particularly its four key Pacific Alliance markets of Mexico, Peru, Chile and Colombia.
Earlier this week, Scotiabank announced net income of $614 million from its international banking unit as part of the release of its third-quarter (Q3) earnings results, up by 16% over the same quarter last year. The bank posted net income of $2.1 billion for its entire operations for Q3.
Read: Q3 results from Scotiabank, BMO beat analyst expectations
Scotiabank also announced that its common equity Tier 1 capital ratio remained strong. at 11.3%.
“Our capital position provides flexibility to grow and invest in our businesses as well as return capital to shareholders,” says Brian Porter, Scotiabank’s president and CEO, accompanying the Q3 earnings results.
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