Canada's Most International Bank Reaches Agreement to Acquire Royal Bank of Scotland's Chilean Corporate and Commercial Banking Operations

SANTIAGO, TORONTO, Sept. 27 /CNW/ - Scotiabank today announced it has reached an agreement to acquire the Royal Bank of Scotland's (RBS) corporate and commercial banking operations in Chile. Terms of the transaction, which is subject to regulatory approval, are not financially material to Scotiabank and were not disclosed.

"This is a unique opportunity to increase Scotiabank's presence in Chile, one of the most developed and attractive markets in the region," said Rob Pitfield, Scotiabank Group Head, International Banking. "It is consistent with our international strategy of investing in countries where we have existing operations and see great potential for growth."

The Royal Bank of Scotland's corporate and commercial banking operations in Chile have approximately US$900 million in total assets.

"We are very pleased to be able to enhance Scotia Capital's global wholesale operations through this transaction," said Mike Durland, Group Head, Global Capital Markets & Co-CEO, Scotia Capital. "Upon closing we will be able to offer capital markets products to new clients and our unique international footprint and extensive experience in serving corporate and institutional clients, combined with a proven track record of offering the best in capital markets products around the world provides us with a competitive advantage as a unique partner for clients in this market."

With a population of 17 million people, the Republic of Chile has a Gross Domestic Product (GDP) of about $US190 billion and the economy is expected to grow from between five to six percent during 2010 and 2011. Scotiabank first entered the Chilean market in 1990 with a 25 per cent stake in Banco Sud Americano. In 2000, it increased its ownership to 98.8 per cent and, in 2007 it acquired Banco del Desarollo. Today, Scotiabank is Chile's seventh largest bank having total assets of US$10.4 billion. Operating with a network of 155 branches, it provides services in retail banking, wealth management, corporate and investment banking, commercial lending and insurance.

"We are very proud of our twenty year history of serving clients in the Chilean market and this transaction represents the continued potential to grow our operations in this country," said Jim Callahan, General Manager and Country Head, Scotiabank Chile. "We look forward to the opportunity to establish a relationship with new banking clients as a result of this agreement."

In Latin America, Scotiabank has operations in Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, Panama, Peru, Puerto Rico and Venezuela. The Bank has more than 32,000 employees, 2,605 automated banking machines (ABMs) and 1,889 branches, kiosks and other offices in the region, including affiliates. Scotiabank has been in El Salvador since 1997, where it is the fourth-largest bank; in Peru since 1997, where it is the third-largest bank; Mexico since 1967, where it is the sixth-largest commercial bank; and Chile since 1990, where it is the seventh-largest bank.

Scotia Capital is the wholesale banking arm of the Scotiabank Group, offering a wide variety of corporate and investment banking and capital markets products and services to corporate, government and institutional clients. Scotia Capital provides full-service coverage across North America, and also serves selected niche markets globally. It has 29 offices and more than 300 relationship managers organized around industry specialties. For more information, please visit www.scotiacapital.com.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With close to 70,000 employees, Scotiabank Group and its affiliates serve approximately 14.6 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With more than $523 billion in assets (as at July 31, 2010), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com