Bank Of Nova Scotia Goes Wholesale Into Mexico >BNS
When Mexican retailer Grupo Chedraui decided to bid for a group of supermarkets owned by France’s Carrefour S.A. (12017.FR), it turned to a Canadian bank.
Bank of Nova Scotia (BNS) sent a team of merger & acquisition specialists to guide the retailer through the process. Along the way, the Toronto-based bank helped Chedraui finance the $550 million purchase, provided foreign-exchange services and helped it hedge its interest-rate risk.
That, says David Wilson, chairman of the bank’s investment-banking wing Scotia Capital, is the kind of cross-selling potential Bank of Nova Scotia sees in Mexico. And that is why the bank unveiled a wholesale “Nafta platform” Thursday in a ceremony in Mexico City.
“We think we are uniquely positioned and want to take advantage of that unique strength,” Wilson says.
Under the “Nafta platform,” Bank of Nova Scotia has now integrated the investment-banking operations of Scotiabank Inverlat, its Mexican subsidiary, into the bank’s Scotia Capital division rather than the International division.
Wilson says the move will allow the bank to offer its wholesale products more efficiently and effectively, while giving Mexican corporate customers easier access to its specialist teams. That means Mexican companies can enjoy the same product delivery, technology and skill set as the Canadian and U.S. companies now served by Scotia Capital.
Bank of Nova Scotia says it’s the only bank that has wholesale operations in Canada, Mexico and the U.S. - the three countries that make up the world’s largest economic unit, the North American Free Trade Agreement, or Nafta. Wilson believes that gives it an edge over its competitors, even if they are larger and more globalized.
“There are a lot of cross-border activities that we can track and make sure our products are offered,” Wilson says.
That does give the bank an advantage over its Canadian peers, says Tom Kersting, bank analyst at Edward Jones. His bullish thesis on the bank is due to its ability to “leverage” its international operations.
“As you see companies becoming more global, they’re going to want to do business with a financial-services company that can offer them services all over the world,” Kersting said. “It is an advantage.”
More: sg.biz.yahoo.com
Nova Chemicals forms joint venture in Mexico
NOVA Chemicals Corp. said on Friday it reached a joint venture agreement with privately-held Mexican firm Grupo Idesa to produce and distribution polystyrene for the construction and packaging industries in Mexico.
The new company, to be called Novidesa, will also distribute NOVA Chemicals' solid polystyrene in Mexico. The joint venture will be formed by a cashless transaction and is expected to begin operations by September.
More: ca.today.reuters.com
Scotiabank aims to boost Mexico mortgage lending 25% in 2006
The Mexican arm of Canada's Bank of Nova Scotia (BNS) plans to make about MXN7 billion ($636 million) in mortgage loans in 2006, up 25% from the previous year as it rolls out new products aimed at middle class home buyers, a company official said Wednesday.
"In mortgage lending we had good (growth) rates in the first quarter. If we maintain that rate we could place close to MXN7 billion in mortgage loans," Grupo Scotiabank retail and commercial banking director Pablo Aspe told reporters.
Scotiabank's performing mortgage book grew 22% to
Mexico's Central Bank Reduces Rates to Boost Economy (Update1)
Mexico's central bank reduced its benchmark lending rate for a second time in as many months to help jumpstart a slowing economy, taking advantage of slowing inflation.
The Bank of Mexico said in a statement it will allow the overnight rate to decline to 9.25 percent from 9.50 percent following a reduction of 0.25 percentage point at its Aug. 26 meeting, which marked the first time ever the central bank set a rate for the market.
``The Mexican economy reduced its expansion rate during the first half of the year, showing lower
UPDATE 1-Bank of America sells Mexico asset management firm
Bank of America Corp. (BAC.N: Quote, Profile, Research) said on Thursday it will sell its asset management business in Mexico to Grupo Financiero Santander Serfin, the Mexican subsidiary of Madrid-based Grupo Santander (SAN.MC: Quote, Profile, Research)(STD.N: Quote, Profile, Research).
Terms of the deal, expected to close no later than the end of first-quarter 2006, were not disclosed. The Mexico business has about $1.8 billion under management.
Bank of America said it decided to sell the business because it did not have sufficient synergies with the company's corporate and investment banking and cash management businesses
Mexico's Inflation Rate Fell to Record Low of 3.05% in October
Mexico's annual inflation rate fell to a record low in October, adding to speculation that the central bank will keep cutting the benchmark lending rate to bolster economic growth.
Inflation was 3.05 percent in the 12 months through October, down from 3.51 percent in September, the central bank said. That's the lowest annual inflation rate since the central bank began keeping records in 1969. Mexico's monthly inflation rate fell to 0.25 percent in October from 0.4 percent the previous month.
The central bank, taking advantage of the slowdown in inflation,
Mexico cenbank eases rates by 25 basis points
Mexico's central bank pushed interest rates 25 basis points lower for a fourth straight month on Friday to fan a weak economy.
With inflation under control, the central bank said it would allow the overnight lending rate to fall to 8.75 percent. The move had been widely expected.
The bank held its money market steady at 79 million pesos per day. The bank controlled monetary policy through changes to the short before it began pushing rates down directly.
After a long period of tightening monetary policy to bring inflation down, the central bank changed direction
Free fund transfers to Mexico offered
Bank of America has teamed with several Mexican banks and government-run agencies to offer free money transfers for Mexicans living in the United States.
Bank officials said last week the business aim of the transfer service - called SafeSend - is to gain customers among a sector of the population in which relatively few people have bank accounts.
"We don't see ourselves in the remittances market," said Eduardo Vergara, senior vice president in charge of international remittances at Bank of America. He said that 41 percent of Hispanic households in the U.S. have accounts at the bank.
The
Bank of America to offer free remittance service to Mexico
Bank of America Corp. is dropping its fees to transfer money to Mexico, a service that will benefit millions of its Hispanic customers, the bank said Wednesday.
The new service, called SafeSend, will be available to any customer with a personal checking account with the Charlotte-based bank. The service was tried on a limited basis in Chicago and now the bank plans to expand it across the U.S.
"We are proud to help millions of Hispanics send money for free to loved ones in Mexico," Liam McGee, president of Global Consumer and Small
UPDATE 1-Mexico central bank holds interest rates steady
Mexico's central bank held interest rates steady on Friday, although it is widely expected to push them lower again later this month to help a soft economy.
The central bank said in its twice-monthly policy review it was keeping its money market "short" unchanged at 79 million pesos a day and made no change to the country's overnight lending rate, which stands at 9.00 percent.
The short regulates overnight lending levels and was the central bank's main monetary policy weapon before it recently began explicitly telling markets how much rates should move.
With inflation under
UPDATE 2-Mexico central bank pushes interest rates lower
Mexico's central bank on Friday pushed interest rates 25 basis points lower for the second straight month to revive a tepid economy.
The bank said it would allow the overnight lending rate, which has held at around 9.50 percent for the last month, to fall a quarter of a percentage point. The move was widely expected as inflation has come under control in recent months.
After a long period of tightening monetary policy to bring inflation down, the central bank changed tack last month and began pushing rates lower to help the struggling economy.
"The
