On February 28, 2022, the Bank of Nova Scotia, commonly known as Scotiabank, recently announced a significant acquisition in its Chilean operations. The bank agreed to purchase a 16.8% stake from Grupo Said in Scotiabank Chile, increasing its total ownership to 99.8%. This strategic move is subject to standard closing conditions and the requisite regulatory approvals.

Brian Porter, President and CEO of Scotiabank, emphasized that this acquisition aligns with the bank's vision of becoming a leading bank in the Americas. He highlighted the value of maintaining a strong relationship with the Said family, which he believes will be beneficial for Scotiabank's continued growth in Chile.

The transaction is valued at approximately CAD 1.3 billion. Upon completion, Scotiabank will pay CAD 650 million in cash and issue 7 million shares to Grupo Said. This transaction will have a slight impact on Scotiabank's Common Equity Tier 1 capital ratio, reducing it by about 10 basis points. Financially, the acquisition is expected to contribute significantly to Scotiabank's earnings, adding approximately CAD 35 million per quarter and immediately increasing earnings per share.

This move is a part of Scotiabank's broader strategic focus to enhance operations and achieve greater scale in regions where it can deliver maximum value for its customers. The acquisition in Chile is a step towards consolidating Scotiabank's presence in key markets and strengthening its position in the financial sector.