Share Name Share Symbol Market Type
Bank of Nova Scotia TSX:BNS Toronto Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +$0.08 +0.11% $75.57 $75.55 $75.60 $75.91 $75.47 $75.91 1,455,701 21:20:00

OFG Bancorp Shares Rise 13% Following Scotiabank Deal

27/06/2019 6:50pm

Dow Jones News


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By Patrick Thomas

 

Shares of OFG Bancorp. (OFG) are up about 13% at $23.40 after it said Wednesday that its subsidiary, Oriental Bank, would acquire Scotiabank's (BNS, BNS.T) operations in Puerto Rico and the U.S. Virgin Islands.

OFG said it would pay $550 million in cash for the Puerto Rico operations, and a $10 million deposit premium for the U.S. Virgin Island branches.

OFG said the deal would boost 2020 earnings by 40%, and that it would fund the deal with excess capital. Scotiabank's Puerto Rico and U.S. Virgin Island operations had $2.5 billion in net loans, $3.2 billion in deposits, 21 branches and about 1,000 employees as of March 31, OFG said.

"Oriental will be the second-largest bank in Puerto Rico in terms of core deposit, branches mortgage servicing and in terms of ATM network," OFG Chief Executive Jose Rafael Fernandez said on a conference call with analysts Thursday.

Fitch Ratings said Thursday that there could be more consolidation in the coming years in the Puerto Rican banking sector as a number of nondomestic banks have been decreasing their footprints on the island over the last several years.

"The benefits will likely accrue to the second- and third-largest domestic banks, First BanCorp. and OFG Bancorp as they continue to build out their franchises," Fitch said.

 

Write to Patrick Thomas at patrick.thomas@wsj.com

 

(END) Dow Jones Newswires

June 27, 2019 13:35 ET (17:35 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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