Bank of Nova Scotia, or Scotiabank, has re-entered the precious metals trading business, according to sources familiar with the matter. This marks a significant shift for the Canadian bank, which had exited the sector six years prior in 2020.

The return suggests a reassessment of the market dynamics and potential profitability within precious metals trading. Scotiabank’s previous withdrawal was part of a broader strategy to streamline operations and reduce risk exposure, but the current move indicates a renewed confidence in the segment.

This expansion could impact market liquidity and competition among banks involved in commodity trading. Investors and market participants will be watching to see how Scotiabank rebuilds its presence and what strategies it employs to regain traction in this specialized area.