Scotiabank has finalized an agreement to transfer its banking operations in Colombia, Costa Rica, and Panama to Colombian bank Davivienda, securing a 20% stake in the combined entity.
Despite the divestment, Scotiabank will continue to serve its clients through Davivienda’s extensive network, which spans over 24 million customers.
Analysts suggest the move aligns with Scotiabank’s strategy to focus on high-return markets in North America, reallocating capital from its Latin American operations to Canada and the U.S. corporate sector.
Scotiabank has faced challenges with its large international footprint, including limited product usage by clients in Latin America.
Davivienda, with 24.6 million customers, over 660 branches, and 2,800 ATMs across Latin America, is expected to see a significant boost in assets—growing by 30% in Colombia, 90% in Costa Rica, and 180% in Panama.
Scotiabank’s Francisco Aristeguieta lauded Davivienda as a strategic partner to advance global wealth management and banking initiatives in the region.
The acquisition positions Davivienda’s total assets to reach approximately $60 billion, enhancing its scale and market presence across Latin America.
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