
Scotiabank announces sale of Puerto Rico, US Virgin Islands operations to Oriental Bank
PRESS RELEASE from Scotiabank
26 June 2019
TORONTO and SAN JUAN, June 26, 2019 /CNW/ - Scotiabank announced today that it has reached an agreement for the sale of its operations in Puerto Rico and the U.S. Virgin Islands ("USVI"), to Oriental Bank, a subsidiary of OFG Bancorp. The agreement is subject to regulatory approvals and customary closing conditions.
"We are pleased to have reached an agreement with Oriental Bank, a prominent local bank with a strong reputation for providing high quality products and services to customers. We are confident that Oriental Bank, with the support of a talented team, will be well positioned to continue to grow the businesses and provide continuity to customers and employees in Puerto Rico and the USVI," said Ignacio (Nacho) Deschamps, Group Head of International Banking and Digital Transformation at Scotiabank.
Oriental Bank is a diversified financial institution that provides personal and commercial banking services to customers, primarily in Puerto Rico. Oriental Bank was founded in 1964 and is headquartered in San Juan, Puerto Rico. The firm has expanded over the years as a result of organic growth and strategic acquisitions. Oriental is committed to broadening its operations and providing the highest quality of products and services to the people and businesses of Puerto Rico and the USVI.
"We're excited about welcoming Scotiabank's valued customers and the talented team to the Oriental Bank family. We have a similar culture, attitude and outlook for our businesses and how we regard and service our customers. We believe the acquisition will make the combined companies stronger in Puerto Rico and the USVI with even greater prospects for growth, profitability and employee engagement," said José Rafael Fernández, President, Chief Executive Officer, and Vice Chairman of the Boards of OFG Bancorp and Oriental Bank.
Until regulatory approvals are obtained and the transaction closes, all operations, branches and products will continue to operate as usual. Oriental Bank and Scotiabank will work together to help facilitate a smooth transition for the business.
As a result of this announced transaction and as required under IFRS, the Bank will record a loss of approximately $400 million after-tax in Q3 2019 and will be reported for accounting purposes in the Other segment. The majority of this loss represents the carrying value of goodwill relating to Puerto Rico. Upon closing, an after-tax gain of approximately $50 million will be recorded relating primarily to accumulated foreign currency translation gains and the premium received on the USVI operations. These amounts may be subject to adjustment at closing which may revise the Bank's total net loss to between $300 million to $360 million after-tax. The transaction will improve the Bank's credit quality, as it reduces Gross and Net Impaired Loans, and increases common equity Tier 1 (CET1) ratio by approximately 5 basis points.
This transaction supports the Bank's strategic decision to focus on key markets across its footprint. With this transaction - and others which have previously been publicly announced - the repositioning of our international footprint will be substantially complete. Over the last 4 years, the Bank has exited or announced its intention to exit 19 countries and redeploy approximately $4 billion of capital to increase the Bank's scale and market share in key markets. Our sharper geographic focus allows us to drive sustainable earnings growth in these key markets, improve earnings quality and the customer experience while reducing risk.
Credit Suisse and Scotiabank's Global Banking and Markets Division acted as co-financial advisors to Scotiabank on this transaction. Sullivan & Cromwell LLP acted as Scotiabank's legal advisor on the sale.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro

Local court suspends US$370mn São Paulo state school PPP contracts
The order of the court, in São Paulo state, attended a petition made by the leftist political party PSOL,.

Mexico FDI disappoints despite hitting record US$37bn
FDI in 4Q24 was the lowest for a quarter since the 1980s, according to data from Banco Base, despite government efforts to boost nearshoring.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Group VII hospital network: National neurosurgical institute
- Current stage:
- Updated:
3 days ago
- Project: Jorge Luque combined cycle plant
- Current stage:
- Updated:
3 days ago
- Project: Pampa Union Solar Plant Expansion
- Current stage:
- Updated:
2 days ago
- Project: Cimarrón wind farm (Energía Sierra Juárez wind complex)
- Current stage:
- Updated:
3 days ago
- Project: Valle del Cauca Road Network: Buenaventura - Buga Corridor
- Current stage:
- Updated:
2 days ago
- Project: New Tacna hospital (Hipólito Unanue)
- Current stage:
- Updated:
3 days ago
- Project: Canoas wastewater treatment plant (Canoas WWTP)
- Current stage:
- Updated:
3 days ago
- Project: Tingo III hydroelectric central
- Current stage:
- Updated:
2 days ago
- Project: Los Merinos wastewater treatment plant
- Current stage:
- Updated:
3 days ago
- Project: General Levalle I wind farm
- Current stage:
- Updated:
2 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Tiernan Gold Corp.  (Tiernan Gold)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Alcaldía Municipal del Distrito Central de Honduras
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Alfran, S.A.  (Alfran)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Belmonte I Parque Solar S.A.  (Belmonte I Parque Solar)
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: Neoenergia Guanabara Transmissão de Energia S.A.  (Neoenergia Guanabara Transmissão de Energia)
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: Gobierno Provincial del Guayas  (Prefectura del Guayas)
-
The Guayas provincial government manages Ecuador's most populated district, comprising 25 cantons in the country's southwest coastal area. It operates through a number of depart...
- Company: ALS Limited  (ALS Global)
-
Tracing its history back to 1863, ALS Limited is a global testing, inspection, certification and verification company headquartered in Brisbane, Australia, and present in more t...
- Company: Anubia S.A.C.  (Anubia)