As part of its efforts to restructure operations, The Bank of Nova ScotiaBNS announced the signing of a definitive agreement with Marquest Asset Management Inc. to sell Scotia Managed Companies Administration Inc. ("SMCA"). The unit is part of Scotia Capital Inc., a wholly-owned subsidiary of Scotiabank.
The deal, still subject to regulatory approvals, is not expected to have any financial impact on Scotiabank. SMCA manages and provides a wide-range of investment products to retail investors. As of Jun 1, 2017, the division managed net assets of C$678.1 million.
The deal is not likely to result in any changes in the day-to-day management of SMCA funds. Following the completion of the deal, the unit will continue to operate as a separate entity.
Earlier in May, Scotiabank had announced the divestiture of its Malaysian unit, Bank of Nova Scotia Berhad to Taiwan-based Cathay Financial Holding Co. According to Sean McGuckin, Scotiabank's chief financial officer, this was part of the company's plan to revamp its Asia strategy and the Malaysian unit was not in line with this plan.
Over the last one year, shares of Scotiabank have gained 18%, underperforming the Zacks categorized Foreign Banks industry's rally of 26.6%.
Currently, Scotiabank carries a Zacks Rank #4 (Sell).
Stocks Worth Considering
Stocks in the same industry worth a look include Banco Santander, S.A. SAN , HSBC Holdings plc HSBC and UBS Group AG UBS . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Banco Santander witnessed an upward earnings estimate revision of 8.7% for the current year, in the last 60 days. Over the last year, its share price rallied 74%.
HSBC witnessed nearly 1% upward earnings estimate revision for the current year, in the last 60 days. Its share price increased 54.7%, in the past one year.
For the current year, UBS Group's Zacks Consensus Estimate has been revised 5% upward, in the last 60 days. Its share price increased 21.2% in the last one year.
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