E*Trade Financial Group agreed to sell its Canadian operations to Bank of Nova Scotia for $442 million and said the sale and return of related capital would generate about $511 million for the struggling online brokerage firm.

The news sent shares of ETrade up 8.5% to $2.67 in after-hours trading, recovering most of its losses from the regular trading session. ETrade, hurt with most regional banks on Monday, closed at $2.46, down 9.6%.