Scotiabank Sells Operations in Colombia, Costa Rica, and Panama to Davivienda
Scotiabank announced that it has reached an agreement to sell its banking operations in Colombia, Costa Rica, and Panama to Davivienda. In return, Scotiabank will receive a 20% stake in the Colombian financial institution. This move is part of Scotiabank’s strategy to enhance operational efficiency in its non-core markets.
The deal with Davivienda provides Scotiabank with the opportunity to collaborate with a well-established management team and strengthens its position in the industry. Davivienda, with over 50 years of experience, operates in multiple countries including Colombia, Costa Rica, El Salvador, Honduras, Panama, and Miami.
As part of the transaction, Scotiabank anticipates taking an after-tax impairment loss of approximately $1.4 billion in the first quarter of 2025. Additionally, the bank estimates that it will incur around $300 million in additional losses upon closing, mainly due to foreign currency translation losses.
This news was first reported by The Canadian Press on January 6, 2025. Companies mentioned in this story: Toronto Stock Exchange (TSX:BNS).
