August 9, 2019 - Scotiabank announced today that an agreement has been reached for the sale of its 51% interest in AFP Colfondos to an affiliate of Administradora de Fondos de Pensiones Habitat S.A. (“AFP Habitat”). As part of the agreement, AFP Habitat is also acquiring Mercantil Colpatria’s 49% interest in AFP Colfondos on substantially the same terms. The transaction is subject to regulatory approval and customary closing conditions.
This transaction supports Scotiabank’s strategic decision to focus its operations on core businesses where it can achieve greater scale. The divestiture of this business will allow Scotiabank to focus on its core banking operations in Colombia, where it will continue to offer a superior customer experience and drive sustainable earnings growth.
AFP Habitat is a firm that manages private pension funds through a network of branches and service centres, primarily in Chile and Peru. AFP Habitat was founded in 1981 and is headquartered in Santiago, Chile. AFP Habitat is one of the largest pension fund administrators in Latin America with a leading track record on investment returns.
“Scotiabank is committed to growing and increasing our scale in Colombia as demonstrated by our recent acquisition of Citibank’s retail and commercial operations last year, increasing our wealth management and insurance offerings to our customers,” said Jaime Upegui, President and CEO of Scotiabank Colpatria. “We are committed to working closely with AFP Habitat to support a smooth transition of the business.”
Scotiabank also recently announced a strategic alliance with BNP Paribas Cardif for the joint development and offering of insurance solutions across Chile, Colombia, Mexico and Peru.
Scotiabank is Canada's international bank and a leading financial services provider in the Americas. We are dedicated to helping our more than 25 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 99,000 employees and assets of over $1 trillion (as at April 30, 2019), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankViews.
About AFP Habitat
AFP Habitat is one of the largest pension fund administrators in Latin America with a leading track record on investment returns. AFP Habitat has an unparalleled experience operating private-sector pension plans, with over 37 years of history providing pension products and services to a nationwide base of more than 3 million customers in Chile and Peru. AFP Habitat distinguishes itself from the competitors by a strong financial position and by a focus on value added products and services to all segments of the economy in both countries. As of June 2019, Habitat S.A. were ranked 1st in Chile in terms of AUM with US$60 billion.
The main shareholders of AFP Habitat are Inversiones La Construcción S.A. and Prudential Financial, Inc., with an indirect 40.3% share each.
For media enquiries only:
Maria Mercedes Ruiz
Gerente, Relaciones Publicas, Scotiabank Colpatria
Martha Rocio Rodriquez Ramos
Gerente, Relaciones Públicas, Colfondos