TORONTO — Scotiabank says it has signed a deal to sell its banking operations in Colombia, Costa Rica and Panama to Davivienda in exchange for a 20 per cent stake in the Colombian financial institution.
The Canadian bank says the deal supports its operational efficiency efforts in its non-core markets.
It says the transaction also gives it the opportunity to participate in a business with a proven management team that will be well-positioned.
Davivienda has more than 50 years of experience with operations in Colombia, Costa Rica, El Salvador, Honduras, Panama and Miami.
Scotiabank says it will take an after-tax impairment loss of approximately $1.4 billion in the first quarter of 2025 in connection with the deal.
It also estimates that it will take about $300 million in additional losses on closing, primarily relating to foreign currency translation losses.
This report by The Canadian Press was first published Jan. 6, 2025.
Companies in this story: (TSX:BNS)
The Canadian Press