On December 13, 2023, Scott Thomson, global CEO of Scotiabank, announced to investors that they would dedicate more capital to their operations in North America and hinted that they could lose strength in some Latin American countries, a fact that was confirmed yesterday with the alliance through which Davivienda acquired the operation ofthe Canadian bank in Colombia (Scotiabank Colpatria) and also in Panama and Costa Rica.
(Read here: Grupo Colpatria signs an agreement to sell its stake in Scotiabank Colpatria)
Thus, the Casita Roja, symbol of Davivienda since its creation in 1972, will be consolidated with a heritage of $22 billion and the Daviplata digital walletwhich today has 18.4 million users, would become the largest, with 2.8 million Scotiabank Colpatria clients.
Under the agreement, Scotiabank’s global expertise will remain as it becomes a shareholder with approximately 20% of all Davivienda operations, including its operation in Central America, some businesses in the United States, as well as a participation in the board of directors, Javier Suárez Esparragoza, president of Davivienda, told Portafolio.
Global Multilatina
The manager said that the implementation of this agreement is subject to the approvals of the supervisors of each of the jurisdictions, which are expected to occur in the second half of the year.
He assured that this is a new step in the internationalization and consolidation of La Casita Roja as a global multi-Latin organization that brings to the Latin markets where it operates a world-class offering of products and services.
(See here: Davivienda acquires Scotiabank’s business in Colombia, Costa Rica and Panama)
Davivienda was born in 1972 as a Savings and Housing Corporation and through various integrations, in 2006 it acquired Bansuperior. In 2007, after the acquisition of Bancafé, it became a universal bank, entering the agricultural, corporate and SME markets. In 2012 it took a step as a multi-Latin bank with the purchase of HSBC’s operations in Central America.
The agreements will allow Davivienda to bring more products to the Latin markets where it operates.
With the integration of Scotiabank’s businesses, Davivienda’s total assets are projected to reach approximately $250 billion, which represents a growth of close to 40%.
This operation strengthens Davivienda’s geographic diversification strategy, leaving 70% of the assets in Colombia and 30% in Central America.
Today Davivienda and Scotiabank serve 27.4 million clients in Colombia and Central America.
Suárez said that the integration allows a strengthening of the value offer, with access to services global financial institutions, greater financing capabilities and strategic advice for large projects.
He added that with the integration of Davivienda’s expertise and Scotiabank’s global experience, SMEs will have access to a portfolio enriched with advanced tools in cash management and credit, with technological support to facilitate business sales.
In addition, he said that Scotiabank’s experience in making alliances in the credit card business, such as that of Codensa in Colombia, is an opportunity to bring differentiated value to individuals and families. Likewise, the experience of access to credit at the base of the pyramid by Scotiabank is an opportunity for Davivienda’s more than 22 million clients.
The Davivienda branch has a new ATM that allows you to make withdrawals when you bring your cell phone closer.
Davivienda
For investor clients, this integration will strengthen the offer with opportunities in international markets, thanks to the execution of agreements with Scotiabank, that facilitates access to your global network.
(Follow here: The Colombian economy in 2025: the low flight will continue)
“This integration allows Davivienda to leverage the best of both organizations to offer clients innovative solutions that allow them to achieve their financial goals with access to a global value offering characterized by our attributes of being: simple, accounting and friendly. For Casita Roja it is an important moment and we are excited because it allows us to take the step to being a Global Multilatina organization, bringing clients the best of the Latin world with an international vision. “We are committed to this new stage in which we will continue developing the talent of our people, taking care of closeness, kindness and trust in our service,” he stated.
“We are excited to team up with Davivienda to offer our clients unique solutions and value propositions by combining its outstanding history and presence in Colombia and Central America, with Scotiabank’s experience and global platform,” said Francisco Aristeguieta, Group Head of International Banking. of Scotiabank and added that the integration “in these markets creates relevant potential for our clients, thus building a future full of opportunities for our talent, partners and shareholders.”
Operation that is complemented by the Colpatria Group
“The agreement fills us with pride and we are very excited about the opportunity to maintain support for our clients and presence in Colombia, Costa Rica and Panama, hand in hand with Davivienda. For us, it has been a privilege to work together on this project of becoming partners”highlighted Jabar Singh, president and CEO of Scotiabank Colpatria (Colombia), Caribbean and Central America.
Likewise, Grupo Colpatria will sell its remaining stake (43.9%) in Scotiabank Colpatria to Scotiabank. The divestment package includes parts in Fiduciary Scotiabank Colpatria (5.4% of Grupo Colpatria) and Scotia Securities (2.5%).
Grupo Colpatria will maintain support in strategic sectors such as financial services, road infrastructure, energy, construction and real estate assets, which represent 55% of its portfolio.
HOLMAN RODRÍGUEZ MARTÍNEZ
Portfolio
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