TORONTO and LIMA, Peru, March 9 /PRNewswire-FirstCall/ -- Scotiabank today announced that it has received regulatory approvals and completed the previously announced purchases of two Peruvian banks. Through these purchases, Scotiabank will invest Cdn$390 million (US$330 million) as announced December 5, 2005. Regulators in Canada and Peru have provided their approval. "We are very pleased to have achieved this next step with the agreements that we have reached in Peru," said Rick Waugh, Scotiabank President and CEO. "We are looking forward to moving ahead with the combination of the banks involved to establish ourselves firmly in the Peruvian market as the country's third largest bank. This is another step forward in Scotiabank's growth strategy in international, and particularly Latin American, markets." Through this investment, Scotiabank has purchased approximately 80 per cent of Banco Wiese Sudameris (BWS) from Italy's Banca Intesa, and has also purchased 100 per cent of Banco Sudamericano (BSA), of which it is currently a 35 per cent shareholder. Over the next several months, these institutions will be combined to form the country's third largest bank. Scotiabank will hold an approximate 80 per cent stake in the new bank with Banca Intesa retaining approximately 20 per cent. Mr. Waugh reinforced the previously stated commitment to address the Aval, a government guarantee currently valued at about US$250 million established by the Government of Peru in favour of BWS, and Scotiabank's intention that the new bank reach an agreement with the Peruvian government regarding all pending economic issues related to the 1999 restructuring of Banco Wiese. "The transfer of BWS control to Scotiabank ahead of schedule is the result of the excellent dialogue and cooperation established by the Intesa and Scotiabank teams combined with the efficiency of the local authorities and regulators," said Giovanni Boccolini, Head of International Subsidiary Banks, Banca Intesa. "BWS has been, and continues to be, a leading financial institution in the Peruvian market thanks to motivated and dedicated members of staff committed to high customer service standards. I am firmly convinced that this transaction is extremely beneficial for all stakeholders of BWS, clients, employees, the Peruvian economy and obviously the shareholders, including Banca Intesa, which maintains a 20 per cent interest in the Bank." This agreement continues a series of recent Latin American investments by Scotiabank, including Mexico, the Dominican Republic, Puerto Rico and El Salvador. "BSA has always provided exceptional customer products and services to our customers," said Roberto Calda, Chairman, Banco Sudamericano. "Not only can our customers look forward to benefiting from the best practices of both banks, but the new bank will have a reach right across the country." "Over the next several months, we will mark a new milestone in the history of our institution, which has roots and growth that are deeply intertwined with the economic development of Peru," said Carlos Gonzalez Taboada, General Manager of Banco Wiese Sudameris. "Our lengthy experience and tradition of seeking to motivate Peruvians to be enterprising, and our intention of providing an exceptional work environment for our employees will be enhanced even more as the combination with BSA moves forward to form part of the Scotiabank Group. Scotiabank has an international scope that few banks can match, and its history and presence in Latin American markets will allow new specialized expertise to be incorporated into the ongoing operations of the new bank." Scotiabank is one of North America's premier financial institutions and Canada's most international bank. In Latin America, Scotiabank operates in Mexico, Peru, El Salvador, the Dominican Republic, Puerto Rico, Costa Rica, Panama and Chile. The Bank also has an affiliate in Venezuela and a representative office in Brazil. Scotiabank is one of North America's premier financial institutions and Canada's most international bank. 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 US$285 billion in assets (as at January 31, 2006), 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 one of North America's premier financial institutions and Canada's most international bank. 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 US$285 billion in assets (as at January 31, 2006), 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, Peru, El Salvador, the Dominican Republic, Puerto Rico, Costa Rica, Panama and Chile. The Bank also has an affiliate in 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 Contacts: Scotiabank, Peru: Giulia Sammarco Carrillo-Albornoz, 2116790, Cell: 97502000, ; Canada: Ann DeRabbie, Scotiabank Public Affairs, (416) 866-3703, Cell: (647) 221-2144,

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