Dominica among several Scotiabank operations in the Caribbean to be sold

Scotiabank Dominica

Dominica is among nine Scotia Bank operations in the Caribbean which are being sold to Trinidad and Tobago-based Republic Financial Holdings Ltd. (RFHL)

The others are Anguilla, Antigua and Barbuda, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. RFHL is also purchasing operations in Guyana and St. Maarten.

Bank of Nova Scotia said Tuesday that it has struck a deal to sell banking businesses in nine of the smaller countries in the Caribbean, such as Antigua and Dominica, as the lender continues to narrow down the number of international markets in which it does business.

The move comes as Scotiabank, which has said larger markets in Latin America are still very much part of its plans, reported that profit at its international unit grew at a greater rate than at its Canadian business over the past year.

“Exiting these non-core operations is consistent with a strategy that began five years ago to sharpen our focus, increase scale in core geographies and businesses, improve earnings quality and reduce risk to the bank,” said Scotiabank president and CEO Brian Porter during a conference call Tuesday morning, adding that the bank has now either exited or announced its intentions to exit more than 20 countries or businesses over that same period.

RFHL said in a release that it had begun the process of purcahsing the Scotiabank operations by signing a Share Purchase Agreement for the total sum of US$123,000,000, “which represents a premium of US$ 98 million for operations in six (6) Eastern Caribbean jurisdictions, St. Maarten and Guyana, plus a US$ 25 million consideration for the total shareholding of Scotiabank Anguilla.”  According to the release, this price does not include any amounts required to capitalise the branches post-closing.

It said further that completion of this transaction is subject to all regulatory and other customary approvals, and conditions.

“Once approved, our expanded presence or entrance in these territories will both add value to the individual markets and redound to the benefit of the Group (RFHL). The Group’s asset size will increase by approximately US$ 2.5 billion and the transaction will be accretive to the earnings of the Bank by approx. USD$0.20 per share,” RFHL stated.

It added that the acquisition will also expand the physical presence of the Group from 117 branches to 139 branches across all regions and add over 600 staff members to the Republic family.

“This is an exciting opportunity for the Group as it affords us the opportunity to grow our market share in the Eastern Caribbean and Guyana, two markets we are familiar with, and build new relationships in St. Maarten. We will keep you informed on its progress.

Republic Financial is the registered owner of all of the Banks in the Republic Bank Group. These include the Republic Bank Limited, Republic Bank (Guyana) Limited, Republic Bank (Barbados) Limited, Republic Bank (Grenada) Limited, Republic Bank (Suriname) Limited, HFC Bank (Ghana), as well as Republic Securities Limited and other subsidiaries.

It is unclear at this point as to what implications this acquisition of Scotiabank’s operations in the Eastern Caribbean will have for Scotiabank in Dominica.

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23 Comments

  1. Carltymas
    November 28, 2018

    The Global Money Market is really taking a hit. People are saving less and investing more. Price, income and interest rate no longer serves as a determinant for aggregate demand or money demand. I am not a pessimist nor do I forecast gloom but I did imagine that eventually, these banks would suffer greatly on small developing states islands due to new consumer practices in this very unstable economic climate. However, I actually thought that RBC would suffer this fate first and did not expect countries such as Trinidad or Jamaica to be in the midst, because they do operate their own CB, however, the stability of their dollar value could be a question.

  2. jamie
    November 28, 2018

    Country is doomed,bank not making no money in those countries,so they are selling,makes sense,passport money not enough.

  3. Neville
    November 28, 2018

    Most of the international banks are leaving so that then leaves the nation money laundering bank of Dominica (NMLBD). I closed my account with them some month ago. If I receive a few thousand dollar from abroad they are asking a thousand questions yet when I go to the branch in Canefield, Venezuelans used to pay in several hundred thousands dollars in cash! No questions asked. Under the Skerrit regime some people are more equal than others. Dominica is the bidding ground for numerous international criminals!

  4. Tobby
    November 28, 2018

    Why not the Government of Dominica come to an agreement and offer Dominica to France. I guess that is the only option to save Dominica right now. Dominica is already between Guadeloupe and Martinique just do the right thing nah.

    • may
      November 28, 2018

      He is already a french man. that would be too easy for him.

    • don2fresh
      November 28, 2018

      These types of comments are disgusting. I wonder what you guys would say if you all DID live under France. You all complain if Skerrit says something and label him as a dictator yet still you want to go under France. Such double standards. I wonder what would happen to you guys if you all lived in a country which was really “Glooms Day” as you all claim Dominica to be.

    • World's Moistest Jheri Curl
      November 28, 2018

      You’re assuming France would want an additional overseas dependency

  5. Tobby
    November 28, 2018

    Ohhh Noooo, ppl stop spread political gimmicks, Scotia is selling its operation in the nine Caribbean countries. It is not to say is Dominica only. Oh gush. So what you guys down in Dominica thinking the other Caribbean countries being politics too why Scotia selling their business. All the government need to do is pay their workers more money so the people can spend more, and Dominica will develop. The negative thinking is where they go get money to pay ppl more, but if the country dnt have money something wrong or they just playing games. A country that paying their ppl next to nothing will always be a poor country. if Dominica poor why the ministers building big houses. many questions to ask.

  6. November 27, 2018

    This doesn’t have anything to do with local politics. ScotiaBank is leaving the whole region, and someone else is buying in to take their place. The only likely change will be the name on the sign, like when Barclays became FirstCaribbean.

    • As if
      November 28, 2018

      Some of these people act like they have cobwebs in place of a brain. They read the article and their cobwebs processed it as Scotia Bank closing down. I listened to two people speaking about said article, getting all hyper about what is going to happen to all the employees, how the interest on loans is going to be so high, how could the prime minister let this happen……Geeze man.

  7. joe
    November 27, 2018

    nno elections yet let all issues come to light so that when uwp comes in power they wont be blamed

  8. November 27, 2018

    @Midnight Hour November 27, 2018

    And who is that prominent savior for the salvation of Dominica; may I ask?

  9. Kermit
    November 27, 2018

    So why it always have to take Matt to break a story or talk about something for people in Dominica to come out to the public?

    • don2fresh
      November 28, 2018

      You do realize that none of the countries knew or was not officially informed that this was going to happen right?

  10. Midnight Hour
    November 27, 2018

    It getting worse by the minute, day after day. Some will say is not Dominica alone but the truth is we are the worse in the Caribbean and we will be more severely impacted than the others. DA is in a lot of trouble no matter how one looks at it and the sooner Skerrit calls the election the better of a chance we get to save our country.

    • November 28, 2018

      Always looking for that political angle, what has a bank selling its operation has to do with your partisan politics? Scotiabank stated their reason for selling or perhaps you did not read the full article. Barclays Bank a major bank in Dominica for years sold its operation to FCIB, FCIB continues to operate in Dominica. Before the elections the police should recall all firearms, suspend the sale of chemicals like gramaxzone, they should take all the necessary actions to prevent incidents of suicide if Skeritt is reelected. As of now there is a very strong possibility that Skeritt and the DLP will prevail at the next election.

      • RandyX
        November 28, 2018

        I wonder why people are always looking for that political angle. Because the double doctor has his dirty mites in every institution, be it public or private. You would do well to start opening your eyes!

    • November 28, 2018

      What does all this have to do with a bank take over this happens all over the world big banks buying out smaller ones have nothing to do with government when bank of America take over Washington mutual
      business continue as usual chase take over other banks and all it is the customers get better service because the have more money to lend and its easier to get loans lets not start wining over nothing Dominican are to easy to wine up over nothing we are making Dominica the country with the most haters & winners in the Caribbean today.

      • Joseph John
        November 28, 2018

        Sir, opposition forces can not get out of their negative mind set. This attribute is deleting their ability to think objectively and to be reasonable. It blocks their understanding and prevent them from making any positive contribution. They have no idea of the difference between the private sector and the public sector decisions. Private sector entities main focus is their bottom line. If they cannot make a profit they will close down, in part or completely. Look at Sears, Toys R US and now General Motors (private companies).
        Scotia is doing favours. They could declare bankruptcy ….
        Banks depend on borrowers to make big profits This means that 20 countries are not borrowing for investment, not even usuing overdraft facilities. This mean that the private sector is dormant and their governments are receiving financial assistance and selling assets to meet their capital expenditure. Nothing to do with politics…….just business. (like Ross in Dominica)

      • Joseph John
        November 28, 2018

        Sir do not let the opposition force haters get to you. They are destines to regress while the majority of Dominicans are moving forward progressively. We know we are masters of our own destiny. We are not complainers or obstructionists. There is no success without trials, tribulations and challenges. Sometimes when you make 5 steps forward someone force you 4 steps back. That’s life. With our determination to succeed we can over come all obstacles and move 6 steps onwards.
        We over came the disasters of Erica ,Mathew and Maria and became even stronger in our resolve. Opposition forces, operating like gangs and mobsters can enjoy their little negative games that will get them nowhere real fast. They are playing those psychology warfare games of intimidation, stress and shame because the have nothing to offer, and can do nothing but talk and yap with fake accusations, demonstrations and violence. That does not feed my family or take me to the bank.

    • don2fresh
      November 28, 2018

      Dude, you need some serious evaluation of your noggin? HOW; tell me HOW is Dominica the worst country?! What is wrong with you people? We have our challenges just like every other country but we ARE NOT THE WORST we trying for our little island!!! Some may not agree that what have been done is progress, or it is too slow, or the process of thing but allu need to stop. Stop saying bull. Stop painting this kind of light on my country. Remove your head out of your derriere and think before you speak or type.
      How do you expect people to support you all with this sort of mentally and attitude to our country and in extension the people of this country? Give me a break. Your dislike of one should not reflect on another my dear. Heal your heart and your head. You all will cause parties like DFP to come up before you all ever get a chance.

      • Joseph John
        November 28, 2018

        Impression that opposition forces want to impart is Dominica is nothing and USA is all that. Why are they paining these pictures. If Dominica is that bad why do they want to take it over ? Why so many people and organization came to aid re Maria? While opposition forces were M.I.A. Our own people keep bashing us and desert us in our time of need.
        The USA, the richest and most powerful country in the world is not perfect, but their people do not decrying it where it is found most wanting.
        The poverty line is $25,100 on average, estimated at 12.3% of population below the poverty line. ( pop at 300,000,000 ), more than 30,000,000 people. Average social security payment is $1,141 per month. The homeless is 555,000. More than half a million people (under estimated, could be a whole mil) . When you have Toys R US , Sears and GM closing down some operations, a lot of people will not be singing Happy Christmas.
        We Dominicans must be thankful and appreciate of what we have…

      • November 29, 2018

        What are you talking about make some sense before you comment I don’t know your age but you sound like you have a brain of a kid Dominica was a country where people was always smiling and saying hello to each other now we forget that just 1 year ago we were all crying and asking god to help us now all we do is call each other names and even insult each other it is high time we look at our selves and do something for the good of our neighbors we need to work together no Haitian no Bajan or Trini will do it for us our country are getting more & more devided .

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