With the signing of a strategic agreement with Davivienda to integrate its operations in Colombia, Costa Rica and Panama, Scotiabank will obtain approximately 20% of a stake in the new combined operation and a seat on the board of directors, thus ensuring its continued presence in the markets where it operates.
This strategic alliance with a global reach, will give rise to a new combined entity that will be the second most important bank in Colombia and will have a prominent presence in Central America.
Davivienda, a Colombian capital bank, will assume Scotiabank’s operations in Panama, reaching a total of more than US$5,000 million in assets.
In a movement that redefines the banking landscape of Panama, after the last acquisition of Banco la Hipotecaria by the Cuscatlán Group of El Salvador.
In the case of Panama, this agreement represents a huge advantage for Davivienda. As of September 2024, Scotiabank maintained a loan portfolio of $2.87 billion in the country, while Davivienda reported $854 million.
Jabar Singh, president and CEO of Scotiabank Colpatria (Colombia), Caribbean and Central America, said that this alliance will allow to combine the scale and experience of Davivienda with the global proposal of Scotiabank.
“It fills us with pride to be part of this project that positions us as strategic partners to continue supporting our customers in the region,” Singh said.
The agreement also contemplates a collaboration and referral model that will offer comprehensive financial solutions, including wealth management services, corporate banking, capital markets and investment banking advice, taking advantage of Scotiabank’s global strengths and Davivienda’s regional scale.
Likewise, the transaction promises to generate important synergies and improve the offer of financial services for customers in Colombia and Central America.
Singh described the alliance as one of the most emblematic of the financial sector in the region, highlighting its ability to offer world-class solutions and strengthen talent at the service of customers.
The closing of the transaction is subject to regulatory approvals, a process that could extend for up to 12 months, so during this period, Scotiabank and Davivienda will continue to operate independently, and the current services and conditions of their products will not be affected.