TORONTO and SANTO DOMINGO, Dec. 20,
2018 /CNW/ - Scotiabank announced today that it has reached
an agreement for the sale of Scotia Crecer AFP and Scotia
Seguros, its pension and related insurance businesses in the
Dominican Republic, to
Grupo Rizek (the "Group"), subject
to regulatory approvals and customary closing conditions. This
transaction, along with the agreement to acquire Banco
Dominicano del Progreso (pending regulatory approval and closing
conditions), supports the Bank's strategic decision to focus its
Caribbean operations on core
markets.
Grupo Rizek is one of the largest
and most prominent diversified business groups in the Dominican
Republic with a long-standing, solid reputation in
agribusiness and the financial services industry.
"This transaction represents the Group's commitment to the
country's economic growth, confirms its confidence in the financial
stability of the Dominican economy, and contributes to a dignified
retirement for our customers," said Grupo
Rizek representative Héctor José Rizek Sued.
"With its strong economic growth and population of over 10
million people, the Dominican
Republic remains an important market for Scotiabank. This
transaction is aligned to recent announcements regarding the
Bank's Caribbean operations,
including our agreement to acquire Banco Dominicano del Progreso
(pending regulatory approval and closing conditions). We are
increasing focus on growing our banking business in the
Dominican Republic, where we have
the opportunity to achieve enhanced scale and offer the greatest
value to customers," said Nacho Deschamps, Group Head of
International Banking and Digital Transformation at Scotiabank.
This transaction is not financially material to Scotiabank. Upon
closing, the sale will result in a capital gain and an increase of
approximately 10 basis points to Scotiabank's common equity tier
one capital ratio. Scotiabank and Grupo Rizek will work
together to ensure a smooth transition for employees and customers
alike.
About Scotiabank
Scotiabank
is Canada's international bank and a leading financial
services provider in the Americas. We are dedicated to helping our
more than 25 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 97,000 employees and assets of $998
billion (as at October 31, 2018), Scotiabank trades on
the Toronto Stock Exchange (TSX: BNS) and New York Stock
Exchange (NYSE: BNS). For more information, please
visit www.scotiabank.com and follow us on Twitter
@ScotiabankViews.
Grupo Rizek
Grupo Rizek is one of the largest
and most prominent diversified business groups in the Dominican Republic with a long-term solid
tradition and reputation in the agribusiness and financial services
industries. The Group has a family legacy that dates back to 1887,
when the Rizek family moved to the Dominican Republic, and to 1905 when the
family started growing, processing and exporting cocoa. Over the
years, the Group has diversified into the energy and tourism
sectors, key for the growing Dominican economy.
SOURCE Scotiabank