Scotiabank completes purchases in Peru to expand Latin American presence
09 Marzo 2006 - 8:12PM
PR Newswire (US)
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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