No word from Scotiabank how it will affect operations in Colombia.
COLOMBIA NEWS — The Canadian-based Scotiabank warns that it’s cutting the equivalent of 1,500 jobs companywide — about two-thirds of them in Canada — and the closure of 120 branches among a number of accounting measures that will cut about CA$341 million from its profit for the fourth quarter.
The announcement from Toronto did not indicate how it will affect operations in Colombia.
Scotiabank first established local presence in Colombia in 2010 through Scotiabank Colombia S.A., offering a broad range of corporate and investment banking, capital markets, cash management and trade finance services. In 2012, Scotiabank acquired a majority stake of Multibanca Colpatria, Colombia’s 5th-largest commercial bank, with a nationwide network of over 170 branches and over 314 ATMs. In order to build and maintain a strong banking presence in the country, Scotiabank Colombia S.A. merged with Multibanca Colpatria in June 2013.
In South America, Brazil, Colombia, Chile, Peru, Trinidad & Tobago, Uruguay, and Venezuela. In Central America, Scotiabank is present in Belize, El Salvador, Guatemala, Nicaragua and Panama.
Last August, Scotiabank president and CEO Brian Porter said the bank was continuing to work on increasing its presence in Central and South America.
“Today’s announcement is a result of making some difficult but necessary decisions to support our long-term goals,” Porter told the Toronto Star Tuesday morning.
Despite the magnitude of the announcement, the bank said it remains on track to meet its 2014 financial objectives. Like Canada’s other major banks, Scotiabank has been extremely profitable — with a total $5.57 billion of net profit in the first three quarters of 2014.
Sources: Scotiabank.com.co; Toronto Star; La Republica (Colombia)
