Scotiabank Peru recently announced that it will take 100 percent interest in Banco del Trabajo, a Peruvian unit of Grupo Altas Cumbres, a Chilean financial group that offers financial services throughout Latin America. Previously the third largest bank in Peru, Scotiabank will become the “number one” bank in consumer finance. As the “number two” bank for micro-lending in Peru, Scotiabank aims to use this acquisition to expand its micro-enterprise and consumer finance services. The agreement will also allow Scotiabank Peru to participate in co-branding with Jockey Plaza, another asset of Grupo Altas Cumbres and the countries largest mall.
Scotiabank was established in 1832 in Halifax, Nova Scotia. Currently operating in 50 countries, it offers personal, commercial, corporate and investment banking services. According to its 2007 Annual Report, Scotiabank’s return on assets was 1 percent for year end October 31 2007 (p 90). Scotiabank also reports the equivalent of USD 451 billion in assets as of January 31 2008. Scotiabank aims to support microfinance in Latin America and the Caribbean as part of its Corporate Social Responsibility initiative.
Scotiabank has operated in Peru since 1997, and in May 2006 Scotiabank Peru S.A.A was established. Scotiabank Peru has 170 branches and other service outlets throughout the country and offers retail, commercial, corporate, treasury and investment services. According to its 2007 Annual Report, its total assets were the equivalent of 6.1 billion (p 5) as of December 2007.
Banco Trabajo, established in 1994, offers loans, savings and insurance to its Peruvian clients. Now the 9th largest commercial bank in Peru, Banco Trabajo was the “first regulated financial institution specialized on providing financial services to individuals of the middle and low income sector in Peru” according to an Inter-American Development Bank 2005 presentation. According to the MIX Market, as of December 2007, Banco Trabajo had total assets of USD 433 million, a debt-equity ratio of 892.72 percent and a return on assets of -1.00 percent. The bank also financed 768,239 borrowers and 580,560 savers.
By Sarah Knapp, Research Assistant
Additional Resources
Banco Trabajo: MIX Market Profile
Inter-American Development: “Banco del Trabajo-Peru“, MIF Remittance Conferece: June 2005
Scotiabank: 2007 Annual Report, Country Profile: Peru, Press Release
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