TORONTO and LIMA, Peru, May 10,
2018 /PRNewswire/ --
Scotiabank today announced its Peruvian
subsidiary, Scotiabank Peru, has reached an agreement with Cencosud
Peru to acquire a 51% controlling interest in Banco Cencosud, which
offers credit cards and consumer loans in Peru, for approximately CAD $130MM. Under the
terms of the agreement, the two companies will also enter into a
15-year partnership to manage the credit card business and provide
additional products and services to customers. Scotiabank and
Cencosud already have similar partnership arrangements in
Chile and Colombia.
Scotiabank will become the second-largest credit card issuer in
Peru following the closing of the
transaction. The terms of the transaction are not financially
material to Scotiabank. This agreement is subject to regulatory
approval.
Cencosud is the second largest supermarket and fourth largest
department store chain in Peru.
Cencosud has operated in the country since 2007 under the
Supermercados Wong, Supermercados Metro and Tiendas Paris brands,
as well as shopping centres. Today, Banco Cencosud has more than
315,000 active clients and approximately CAD $240MM in outstanding
loans in Peru.
"Building on our existing partnership with Cencosud enables us
to increase Scotiabank's market share and presence in Peru and provides us with a larger base of
customers to offer our leading financial products and services,"
said Ignacio (Nacho) Deschamps, Group Head, International Banking
at Scotiabank. "This transaction also aligns to Scotiabank's
broader international strategy to increase scale in the Pacific
Alliance economies of Mexico,
Peru, Chile and Colombia."
"Working together with Cencosud, Scotiabank will look to
strengthen and build our credit card and consumer loan portfolio,"
said Miguel Uccelli, Country Head
and Chief Executive Officer of Scotiabank in Peru. "Scotiabank Peru will leverage this
increased partnership to build new customer relationships and drive
organic growth in the Bank's retail portfolio."
Scotiabank in Peru and
Latin America
- Scotiabank established a presence in Peru in 1997.
- Scotiabank increased its presence with the acquisition
of Banco Wiese Sudameris and Banco Sudamericano in 2006, Banco del
Trabajo in 2008 and Citibank's Commercial and Retail portfolio in
2015.
- In 2008, Scotiabank entered the Pension Funds business
with the acquisition of Profuturo. Scotiabank increased its client
base to 1.8 million with a 50% acquisition of AFP Horizonte.
- Today, Scotiabank's banking division in Peru has close to 10,500 employees, 310
branches, 975 ABMs across the country and 3.5 million retail,
corporate, commercial and institutional customers.
- Scotiabank operates in 11 countries across Latin
American, with a primary focus on Mexico, Peru,
Chile, and Colombia.
About Scotiabank
Scotiabank is Canada's international bank and a leading
financial services provider in North America, Latin
America, the Caribbean and Central America,
and Asia-Pacific. We are dedicated to helping our 24 million
customers become better off through a broad range of advice,
products and services, including personal and commercial banking,
wealth management and private banking, corporate and investment
banking, and capital markets. With a team of more than 89,000
employees and assets of over $923 billion (as
at January 31, 2018), Scotiabank trades on
the Toronto (TSX: BNS) and New York Exchanges (NYSE:
BNS). For more information, please
visit http://www.scotiabank.com and follow us on Twitter
@Scotiabank.
Media enquiries - Scotiabank, Juan Iramain, +1-416-866-4362,
juan.iramain@scotiabank.com ; Investor Relations - Scotiabank,
Adam Borgatti, +1-416-866-5042,
adam.borgatti@scotiabank.com