Scotia expands into Colombia

Scotiabank has expanded its international footprint with the purchase of The Royal Bank of Scotland’s wholesale banking operations in Colombia.

This is Scotia’s debut into the country, making it the first Canadian-owned wholesale institution with a presence in Colombia.

The deal is effective immediately, with the bank having secured all necessary regulatory approvals. The new operations have been renamed Scotiabank Colombia S.A., and it will offer corporate banking services as well as access to capital markets products through Scotia Capital.

“We will also be able to provide multinational clients — and a growing number of local companies based in Colombia, doing business in Latin America — with support in all countries where Scotiabank operates, providing tailored financial solutions,” said Paul D’Agata, managing director, Scotia Capital. D’Agata will oversee the Colombian corporate banking business.

Scotia frequently refers to itself as “Canada’s most international bank” and has met with success in Latin American markets. It already has operations in Brazil, Chile, Mexico, Peru and Venezuela, with about 25,000 employees and 1,474 branches.

“We are excited about this expansion into Colombia, as it reinforces our commitment to provide global wholesale banking products and industry expertise to clients and multinational corporations around the world,” said Steve McDonald, group head, global corporate and investment banking and co-chief executive officer, Scotia Capital. “It also represents Scotia Capital’s commitment to deepen our expertise and client relationships throughout Latin America.”

On Tuesday, Scotiabank Mexico announced its second quarter earnings, with a consolidated net income of $54 million, up from $32 million in the same quarter last year.

Much of that gain came from the sale of a portion of its credit card portfolio last year. Apart from that sale, results were driven by higher net interest income and slightly lower credit losses.

(08/03/10)