Our estimate was somewhat correct regarding the sale of ING. Scotia could finally snatch the bargain – pending regulatory review.
Price Tag of Canadian ING:
Scotia will be paying $3.1 billion cash. ING has some current excess capital so the net investment by Scotia will be $1.9 billion.
Benefits for Scotia:
- Will boost Scotia’s balance sheet by $30b.
- Will give 1.8 million new customers to Scotia.
- $40 billion in asset – icing on the cake.
- 59% insured mortgage portfolio.
- Loan to Value on uninsured mortgages are average 53%.
The deal should close by the end of this year.
New Residential Mortgage Lender for Broker Channel:
CMLS Financial Ltd announced that they will launch broker only residential mortgage products from early next year.