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
416-866-4362
juan.iramain@scotiabank.com
Investor Relations - Scotiabank
Adam Borgatti
416-866-5042
adam.borgatti@scotiabank.com