RE: Interesting read -BNS see last paragraph "Bank of Nova Scotia is the exception to the rule that foreign operations are less profitable than the domestic franchise. Its international divisions, which include long-established branches in the Caribbean and Central America, boasted a robust 24-per-cent ROE in the past quarter. Scotiabank had an overall ROE of 21 per cent. That explains CEO Rick Waugh's shareholder-friendly strategy of expanding in Mexico and other central and south American countries."
Jamie Keating, RBC analyst from Aug22/05 FP:
"Specifically, Mr. Keating said BNS has had an unusually low tax rate due to Mexican laws, which are set to expire next year."
Keating doesn't quantify the rate changes but they will impact the ROE from Mexico operations.