Chile Expansion Helps Scotiabank Make Record Profits

The Bank of Nova Scotia's strategy in Latin America favored record profits for international banking operations. in the fourth quarter. However, the group is now receding in some countries.

The bank has put up for sale operations in nine Caribbean countries, a region in which it has operated for 129 years.

"Let's divert these non-core operations, which is in line with the strategy that began five years ago: focus our efforts on expanding geographic areas and core businesses, improving the quality of profits and reducing risks, "group chief Brian Porter said on Tuesday. a conference call.

Scotiabank focused its international expansion in four Latin American countries: Mexico, Colombia, Peru and Chile. The strategy was successful in the fourth quarter, during which the international banking division recorded record earnings and the highest profits of the Toronto bank's three largest segments.

Profits from international banking increased by 22%. % its biggest increase in three years, thanks in part to the contributions of the Chilean bank BBVA Chile, acquired this year. This growth outpaced the 4.5% increase in profits of Canadian banks compared to the previous year and the leap of 6.4% in the banking division and global markets.

The retreat in the Caribbean is not a withdrawal. Total: The bank is present in more than ten Caribbean markets and plans to complete the acquisition of Banco Dominicano del Progreso SA in the Dominican Republic in the first quarter. Scotiabank has more than 7,700 employees in the Caribbean and 1.5 million customers.

"We plan to stay in our main markets in the Caribbean," Porter said.

The bank agreed to sell its activities in Anguilla, Antigua, Dominica, Grenada, Guyana, St. Kitts and Nevis, St. Lucia, St. Martin, St. Vincent and the Grenadines to Republic Financial Holdings Ltd. The terms of the agreement did not appear. It also sells its life insurance business in Jamaica and Trinidad and Tobago to Sagicor Financial Corp.