Scotiabank looking to plant roots in Uruguay

Scotiabank said it is negotiating purchase of two businesses that will mark its entry into Uruguay.

The bank has struck deals to acquire 100 per cent of Nuevo Banco Comercial (NBC), Uruguay's fourth-largest private bank in loans and deposits, as well as Pronto!, the third-largest consumer finance company.

The terms of the transaction with equity fund Advent International, were not disclosed because, the Canadian bank said, the acquisitions were "not financially material" to Scotiabank group.

NBC has 49 branches, 710 employees and 85 automated banking machines (ABMs), making it the largest retail banking network in Uruguay and the only private bank with a presence in all 19 provinces, said Scotiabank.

It controls 11 per cent of the loans and deposit market

It also operates a three-branch, full-banking subsidiary in Brazil.

Scotia's acquisition of Pronto! gives it a client base of 200,000, 600 retail points of sale and 37 branches, operated with a corp of 480 employees.

The deal will close after regulatory approvals.

"Latin America continues to be an important part of Scotiabank's international strategy and we have built a strong and unique franchise by delivering superior service," said Brian Porter, Scotiabank Group Head, International Banking, the job formerly held up to October, by Robert Pitfield, chairman of Scotiabank Jamaica.

"Scotiabank has ambitious plans for the Uruguay market and that is what makes this an exciting opportunity for our customers," he said.

Scotia did not say when the deal with global buyout firm Advent was expected to close.

- AP