In recent years, Canada’s largest banks have become known for acquisitions outside Canada’s borders. With the Canadian economy performing well, but Canadian banks hungry for growth, investing in emerging markets seems like the logical thing to do.
One of Canada’s “Big 5” banks, The Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) has for years been building the company’s portfolio of banking interests in Latin America and Asia, far away from the traditional Canadian bank mantra of staying within North America, or perhaps venturing to Europe for some diversification.
Taking a much different approach, Scotiabank’s management team has once again initiated an acquisition in Chile, boosting the company’s banking interests in the company, resulting in a subsidiary which will be the third largest bank in the country (when combined with existing operations).
Scotiabank’s dominant position in the Mexican market as well (currently the fifth largest player in the Mexican market at the time of writing) is very promising for investors bullish on continued economic expansion in Mexico, despite near term NAFTA-related concerns, given the harsh position taken by the Trump Administration of late.
With the Big 5 Canadian banks offering investors exposure to a range of different markets, Scotiabank’s portfolio of subsidiaries is perhaps the most intriguing to consider, given the potential diversification advantage owning assets in under-invested countries would provide one’s portfolio.
Invest wisely, my friends.
