TORONTO AND BOGOTA, Dec. 19, 2012 /CNW/ - Scotiabank today announced it has completed the acquisition of a 51 per cent stake in Colfondos AFP, Colombia's fourth largest pension fund company, having received all necessary approvals. Mercantil Colpatria retains 49 per cent ownership in the firm. The terms of the transaction are not financially material and were not disclosed.

"Expansion in Latin America is a strategic priority for Global Wealth Management and we chose Colfondos because of its history of success and scale in the market," said Chris Hodgson, Scotiabank's Group Head of Global Wealth Management. "Scotiabank brings its proven experience and global capabilities to continue the growth and expansion of this business along with our partners at Mercantil Colpatria."

Colfondos, with US$9.7 billion in Assets Under Management, has grown its presence to 27 offices in 20 cities across Colombia and 1,100 employees since it was founded in 1991. In 2009, Mercantil Colpatria acquired a majority stake in Colfondos.

Scotiabank also operates pension fund company Profuturo AFP in Peru, which it acquired in 2008, and Scotia Crecer AFP in the Dominican Republic, which it acquired in 2007.

Scotiabank in Colombia

• Scotiabank entered the retail banking market in Colombia with the purchase of a 51 per cent stake in Banco Colpatria in January of 2012.
• Scotiabank, through its Global Banking and Markets division, entered Colombia in 2010 with the acquisition of the wholesale banking operations of RBS.

Scotiabank in Central & South America

• Scotiabank has had a presence in Central and South America for more than 40 years.
• Scotiabank has operations in 13 countries in Central and South America: Peru, Chile, Panama, Brazil, Uruguay, Costa Rica, Guatemala, Colombia, El Salvador, Guyana, Nicaragua, Belize and Venezuela.
• Scotiabank's international wealth management operations include a number of asset management, insurance and full service brokerage businesses. Through its Global Wealth Management division, Scotiabank also offers private banking and trust services to high net worth clients worldwide.

About Scotiabank
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 81,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $668 billion (as at October 31, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

SOURCE: Scotiabank