TORONTO, ON and SANTIAGO, CHILE --(Marketwired - June 20, 2014) - Scotiabank today announced the acquisition of a 51% controlling interest in the financial services business of Cencosud S.A., which distributes credit cards and consumer loans in Chile. Concurrently, Scotiabank and Cencosud also entered into a 15-year partnership arrangement to manage the credit card business and provide additional products and services to customers of both organizations.
Cencosud is the largest retailer in Chile and the third largest retailer in Latin America. The company's financial services business includes approximately 2.5 million credit cards and more than US$1.2 billion in outstanding balances in Chile. Cencosud also manages the Puntos Cencosud loyalty program, one of the most popular loyalty programs in the country. Scotiabank's business in Colombia, Banco Colpatria, has a similar partnership arrangement with Cencosud in that market.
The transaction, pending regulatory approval by the Superintendencia de Bancos e Instituciones Financieras in Chile and the Office of the Superintendent of Financial Institutions in Canada, is valued at approximately C$300 million and includes a commitment to fund 100% of the loan portfolio.
"Scotiabank is excited about this acquisition because it will strengthen our credit card offerings for our customers and attract new customers to the bank," said Wendy Hannam, Scotiabank's Executive Vice President for Latin America. "This transaction will also increase our scale in Chile's growing consumer lending market and is consistent with our focus on growing in key markets in Latin America, including Chile."
This acquisition will make Scotiabank the third largest credit card provider in Chile.
"Working together with Cencosud, Scotiabank will look to strengthen and build this credit card and consumer loan portfolio," said Francisco Sardón, Country Head and Chief Executive Officer of Scotiabank in Chile. "This partnership will also give Scotiabank the opportunity to build new customer relationships and drive organic growth in the Bank's retail banking division."
Scotiabank in Chile and Latin America
- Scotiabank entered Chile in 1990 and has since grown to an operation with close to 3,800 employees, 130 branches and 166 ABMs across the country.
- Scotiabank in Chile serves more than 240,000 retail, corporate, commercial and institutional customers.
- Scotiabank operates in 11 countries across Latin American, with a primary focus on Chile, Peru, Mexico and Colombia.
About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $792 billion (as at April 30, 2014), Scotiabank trades on the Toronto (
For media enquiries: Paula Cufre Scotiabank Media Communications 416-866-4833 Paula.cufre@scotiabank.com
