Canada’s Bank of Nova Scotia (Scotiabank) aims to generate 20% to 30% of total profit from its global wealth and insurance unit in three to five years, according to Bloomberg.
As a part of the strategy, the bank is also aiming to increase earnings from its wealth division’s overseas operation to at least 30% of the division’s earnings.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The business has accounted for 19% of the lender’s earnings in the first three fiscal quarters, with 25% of that from outside Canada.
The unit is also targeting organic earnings growth, which excludes acquisitions, of more than 10%, and a return on economic equity of at least 16% to 20%.
The publication quoted Chris Hodgson, group head of global wealth and insurance, as saying that the bank is expecting to achieve these through good markets or bad markets.
"The division can increase earnings in the short term by 10 to 15%, and more in the medium term and additional growth will come from opportunistic acquisitions," Hodgson added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe Bloomberg report also revealed that Scotiabank is interested in buying more pension assets outside Canada and is also seeking to expand institutional asset-management business in Canada through the purchase of CI Financial Corp in 2008 and DundeeWealth in 2011.
Scotiabank has spent more than C$6 billion ($5.8 billion) on wealth acquisitions in the past five years and its global wealth business has C$139 billion of assets under management, C$315 billion of assets under administration and operates in 24 countries.
The business had C$3.3 billion of revenue for the 12 months ended 31 July 2013. Insurance accounted for about C$600 million of revenue for the period, and operates in 30 countries.
"We’ll be keeping an eye open for other assets that may come available, but we’d only do them in markets where we already have a strong banking presence," Hodgson said.
