Proactive Investors - The Bank of Nova Scotia (TSX:BNS), also known as Scotiabank , is focusing its efforts on growing its Canada, United States and Mexico businesses, CEO Scott Thomson told shareholders during the company’s investor day on Wednesday.
The company plans to allocate about 90% of its capital to its “lower risk, less volatile” North America units and may exit its Central America of Colombia businesses, the CEO said.
“We are accelerating growth in our Canadian franchise and allocating capital increasingly towards stable, high-return markets in North America," Thomson told investors and analysts in Toronto.
The bank said it plans to move away from a volume-based approach to customer acquisition and instead focus on profit.
"There are clear realities that have impacted our relative performance. First and foremost, we are behind in winning primary relationships, with approximately 16% of clients using Scotiabank (TSX:BNS) for their day-to-day banking needs,” Thomson said.
In the medium term, the company aims to grow its earnings per share by 7% and return on equity by 14%, while increasing capital levels by 12%. It also plans to up its productivity ratio to about 50%.