(CMR) Bank of Nova Scotia has reached a deal to sell its operations in the British Virgin Islands as the Canadian bank continues to shrink its Caribbean footprint.
Claiming a need to improve operational efficiencies they are selling100% stake in Scotiabank (British Virgin Islands) Limited to Trinidad & Tobago-based Republic Financial Holdings Limited. The financial terms of the deal or the date of completion were not disclosed.
The transaction supports the Bank's strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the best value for customers, Scotiabank said in a statement.
The transaction is still subject to regulatory approval and customary closing conditions.
In a statement, Scotia Bank management said, “This transaction supports the Bank's strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the best value for customers.”
Past Restructuring Efforts
Over the past year, Scotia Bank has undertaken several strategic measures to overcome the challenging operating backdrop. Earlier this month, the bank completed the sale of its banking operations in seven Caribbean countries.
Moreover, the company has announced plans to lower stake/move away from several non-strategic markets, including Thailand, Colombia, Puerto Rico, the U.S. Virgin Islands, Dominican Republic, and El Salvador. All these efforts are expected to help the bank increase share in its key markets.
Further, Scotia Bank has established Global Wealth Management (“GWM”) as a separate business division, “given its significant scale, double-digit asset growth over the last few years.” The bank expects GWM to further support its profitability.
Additionally, in July, Scotia Bank entered into a long-term bancassurance strategic alliance with BNP Paribas Cardif, the insurance unit of BNP Paribas SA BNPQY. Earlier in March, it acquired 97.44% of Banco Dominicano del Progreso in the Dominican Republic and a 51% stake in Banco Cencosud in Peru. Scotiabank’s group head of international banking and digital transformation Ignacio Deschamps said it was pleased to reach an agreement with Oriental Bank, a prominent lender with a “strong reputation.”
In June it sold its operations in the U.S. Virgin Islands and Puerto Rico to OFG Bancorp at a loss as the bank continues to shrink its sprawling global footprint.
Scotiabank has been named the Canadian Bank of the Year for 2019 by The Banker magazine in Canada, a Financial Times publication. The award highlights those banks that have achieved industry-wide excellence within the banking community.