Scotiabank pulls plug on sale of metals business
By GCRU Gold News on Wednesday, February 28 2018, 00:14 - Permalink
Canadian lender Bank of Nova Scotia said on Tuesday it would keep its ScotiaMocatta metals trading business, ending months of speculation that it could be sold, and the bank also reported earnings that beat market expectations.
However, the metals business will be slimmed down following a strategic review, the bank’s investment banking head, Dieter Jentsch, said on a conference call.
“We will be exiting some markets, we will be simplifying our product suite, and we’ll be much more judicious about our allocation of capital and liquidity,” Jentsch said.
The bulk of ScotiaMocatta’s business is in precious metals and it is one of five banks that clear bullion in London’s $5 trillion a year gold market, the world’s biggest.