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The Bank of Nova Scotia's strategy in Latin America favored record profits for international banking in the fourth quarter. However, the group is now withdrawing in some countries.
The bank is present in nine Caribbean countries, where it has operated for 129 years.
"The divestment in these non-core businesses is part of the strategy put in place five years ago: focus our attention, increase the scale of geographical areas and main activities, improve the quality of profits and reduce risks, "said the group's leader. , Brian Porter, during a teleconference Tuesday.
Scotiabank has 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 profits and the highest profits of the three largest segments of the Toronto-based bank.
International bank profits rose 22 percent, the largest increase in three years, thanks in part to contributions from Chilean bank BBVA Chile, which it 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 withdrawal in the Caribbean is not a total withdrawal: the bank is present on 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 hope to stay in our main Caribbean markets," Porter said.
The bank agreed to sell its operations in Anguilla, Antigua, Dominica, Grenada, Guyana, St. Kitts and Nevis, St. Lucia, St. Martin and St. Vincent and the Grenadines to Republic Financial Holdings Ltd. The terms of the agreement are not fulfilled. It also sells its life insurance business in Jamaica and Trinidad and Tobago to Sagicor Financial Corp.
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