RSS Scotiabank To Transfer Banking Operations In Colombia, Costa Rica, Panama To Davivienda

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 RSS Scotiabank To Transfer Banking Operations In Colombia, Costa Rica, Panama To Davivienda

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The Bank of Nova Scotia (BNS) announced on Monday its plans to transfer its banking operations in Colombia, Costa Rica, and Panama to Davivienda, a prominent entity in Latin America.

In return for this transfer, Scotiabank will acquire a stake in the form of newly issued common and preferred shares, approximately representing a 20% equity ownership in the merged entity.

This strategic move aims to boost Scotiabank's operational efficiency in markets that are not central to its core business. It also allows the bank to concentrate on prioritizing client needs in key growth areas within the North American corridor and across Latin America.

The transaction is expected to be finalized roughly one year from the signing date and is anticipated to be overall capital neutral, with a potential positive impact on earnings in the future.

Scotiabank's shares are currently trading at $53.97, reflecting a 1.09% increase on the New York Stock Exchange.

The material has been provided by InstaForex Company - www.instaforex.com
 
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