Scotiabank makes investments in Peru to expand presence in Latin America
06 Dicembre 2005 - 12:40AM
PR Newswire (US)
TORONTO and LIMA, Peru, Dec. 5 /PRNewswire-FirstCall/ -- Scotiabank
today announced a Cdn$390 million (US$330 million) investment in
Peru as part of its strategic growth plan in Latin America. The
full investment also includes US$266 million by Italy's Banca
Intesa for a combined value of almost US$600 million. "We have been
part of the Peruvian market for eight years and we see great
potential in this market. We look forward to finalizing the
agreement and building on our presence in this country," said Rick
Waugh, Scotiabank President and CEO. "This agreement demonstrates
our commitment to grow the Bank through strategic acquisitions in
key markets in Latin America." Through this investment, Scotiabank
will acquire from Banca Intesa approximately 80 per cent of Banco
Wiese Sudameris (BWS). At the same time, Scotiabank announced that,
following its acquisition of control of BWS, it will take majority
ownership of Banco Sudamericano, of which it is currently a 35 per
cent shareholder. If the deal receives final approval, these
institutions will then be combined to form the country's third
largest bank. Scotiabank expects to hold an approximate 80 per cent
stake in the new bank with Banca Intesa retaining approximately 20
per cent. The transaction is subject to regulatory approvals. "If
this transaction receives all regulatory approvals, we intend the
new bank to reach an agreement with the Peruvian government
regarding all pending economic issues related to the 1999
restructuring of Banco Wiese," said Mr. Waugh. "This agreement
would include a cancellation of the Aval, a guarantee currently
valued at about US$250 million established by the Government of
Peru in favour of Banco Wiese, freeing up these funds for other
important government projects and initiatives on behalf of the
people of Peru. We believe this is an important step in resolving
an outstanding issue and eliminating uncertainty, enabling us to
move forward and grow our operations in Peru, while serving our
customers effectively." "Given BWS's relevance to the Peruvian
banking system, Banca Intesa was looking for a partner that could
further strengthen BWS, and pursue with us the interests of the
Peruvian economy in ensuring the stability of its banking system
and the interests of customers and employees in preserving BWS as a
prominent banking institution," said Giovanni Boccolini, Head of
International Subsidiary Banks, Banca Intesa. "We believe we have
found such a partner in Scotiabank." This agreement continues a
series of recent Latin American investments by Scotiabank,
including Mexico, the Dominican Republic, Puerto Rico and El
Salvador. Scotiabank currently holds a 35 per cent stake in Peru's
Banco Sudamericano. "Over the last eight years, we have become very
familiar with Scotiabank and welcome their move to take majority
ownership of Banco Sudamericano," said Roberto Calda, Chairman,
Banco Sudamericano. "Scotiabank has developed an understanding of
the Peruvian market that will enable them to continue to serve our
customers with excellent products and services." Banco Wiese
Sudameris also welcomed today's announcement. "We believe that this
agreement represents ongoing stability and continuity for our
customers and our employees," said Carlos Gonzalez Taboada, General
Manager of Banco Wiese Sudameris. "In December 2003, the new
management of BWS made a commitment to clients and markets to be
one of the better banks in Peru. The 2005 annual results confirm
that we have been successful, and we look forward to continuing to
serve the present and new generations of customers, with more and
better services." Analyst Conference Call ----------------------- -
An analyst conference call will take place on Tuesday, December 6,
2005 at 9:00 a.m. EST. - Interested parties are invited to access
the call live, in listen-only mode: - Via telephone, toll-free, at
1-800-814-3911 (please call five to 15 minutes in advance). - Via
the Internet on the Investor Relations page of
http://www.scotiabank.com/ Conference Call Archive
----------------------- - A telephone replay of the call will be
available until December 25, 2005 by calling 416-640-1917
(identification code 21165908 followed by the number sign). - The
archived audio webcast will be available on the Investor Relations
page of http://www.scotiabank.com/ from approximately 11:00 a.m.
EST on December 6, 2005 for three months. Scotiabank is one of
North America's premier financial institutions and Canada's most
international bank. In Latin America, Scotiabank operates in
Mexico, El Salvador, the Dominican Republic, Puerto Rico, Costa
Rica, Panama and Chile. The Bank also has affiliates in Peru and
Venezuela and a representative office in Brazil. With more than
50,000 employees, Scotiabank Group and its affiliates serve about
10 million customers in some 50 countries around the world.
Scotiabank offers a diverse range of products and services
including personal, commercial, corporate and investment banking.
With Cdn$314 billion (U.S.$266 billion) in assets (as at October
31, 2005), Scotiabank trades on the Toronto (BNS) and New York
(BNS) Stock Exchanges. For more information please visit
http://www.scotiabank.com/. Backgrounders: Scotiabank Scotiabank is
a Canadian-based international bank with operations in some 50
countries around the world. With more than 50,000 employees,
Scotiabank Group and its affiliates serve about 10 million
customers. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment
banking. With Cdn$314 billion (US$266 billion) in assets (as at
October 31, 2005), Scotiabank trades on the Toronto (BNS) and New
York (BNS) Stock Exchanges. For more information please visit
http://www.scotiabank.com/. In Latin America, Scotiabank operates
in Mexico, El Salvador, the Dominican Republic, Puerto Rico, Costa
Rica, Panama and Chile. The Bank also has affiliates in Peru and
Venezuela and a representative office in Brazil. Recent investments
in Latin America: - In 2003 Scotiabank announced an agreement to
acquire an additional 36 per cent of the shares of Grupo Financiero
Scotiabank Inverlat (GF Scotiabank Inverlat). The Bank's current
share in Scotiabank Inverlat currently exceeds 97 per cent.
Scotiabank Inverlat is the country's sixth largest bank. - In 2003,
Scotiabank announced that it finalized an agreement that more than
doubled the size of its operations in the Dominican Republic.
Scotiabank is the oldest bank in this country, having established a
presence more than 80 years ago. - In 2004, Scotiabank El Salvador
announced plans to merge with Banco de Comercio. The resulting
merger established Scotiabank El Salvador as the majority
shareholder of the country's fourth-largest bank, with a
consolidated market share of more than 17 per cent. - In 2005,
Scotiabank Puerto Rico announced that it had entered into an
agreement to acquire the assets and operations of Pan American
Financial, one of the largest private mortgage originators in
Puerto Rico. Scotiabank Puerto Rico is a leading commercial bank in
Puerto Rico, with 18 branches and over 550 employees. Banco
Sudamericano Scotiabank's initial investment in Banco Sudamericano
(BSA) was made in 1997 representing a 25 per cent equity
participation. Scotiabank's position has subsequently been
increased to 34.9 per cent. BSA ranks 5th in loans and 7th in
deposits, with 4.6 per cent and 2.4 per cent market share,
respectively. The bank has approximately 30 branches throughout
Lima and a subsidiary in Panama and counts about 1,000 employees.
As part of this agreement, Scotiabank plans to increase its 35 per
cent equity interest in Banco Sudamericano (BSA) to majority
ownership. Banco Wiese Sudameris BWS is Peru's third largest bank
by assets (more than US$3 billion), loans and deposits. It is a
full service bank catering to more than one million customers
through its network of 108 branches, with strong presence in the
capital city of Lima and in Callao, and in all of the capital
cities in the regions of the country. The bank has 2,700 employees,
and is strong in retail lending, including mortgages, credit cards
and leasing, and was the first local financial institution to offer
internet banking in Peru. BWS is the result of a merger between the
originally family-owned Banco Wiese Ltd. and Banco de Lima
Sudameris (BLS), both entities with long and prestigious histories
dating back to 1943. Banca Intesa took control of BWS through a
merger with Banca Commerciale Italiana (BCI). In 1999, Banco de
Lima Sudameris (owned by BCI), purchased 60 per cent of Banco Wiese
Ltd. DATASOURCE: Scotiabank CONTACT: Media: Scotiabank: Peru:
Ernesto Calderon, Chirinos, Salinas & Cateriano, 2225289, ;
Canada: Ann DeRabbie, Scotiabank Public Affairs, (416) 866-3703,
Cell: (647) 221-2144,
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