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TORONTO – Scotiabank says it has signed an agreement to sell its banking operations in Colombia, Costa Rica and Panama to Davivienda in exchange for a 20 percent stake in the Colombian financial institution.
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The Canadian bank says the deal supports its efforts to improve performance in its non-core markets.
It says the transaction also provides an opportunity to participate in the business with a proven management team that will be in good standing.
Davivienda has over 50 years of experience working in Colombia, Costa Rica, El Salvador, Honduras, Panama and Miami.
Scotiabank says it will take an after-tax impairment loss of about $1.4 billion in the first half of 2025 in connection with the deal.
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It also estimates it will take approximately $300 million in additional losses on closing, primarily related to foreign currency translation losses.
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