Scotiabank and Davivienda close previously announced transaction to transfer Scotiabank's banking operations in Colombia, Costa Rica and Panama

Executive Summary

• Scotiabank and Davivienda completed the previously announced transaction transferring Scotiabank’s banking operations in Colombia, Costa Rica, and Panama to Davivienda.
• In exchange, Scotiabank received an approximately 20 % ownership stake in the newly formed Davivienda Group holding company.
• The deal is expected to generate a ~10‑basis‑point uplift to Scotiabank’s Q1 2026 CET1 ratio and will be accounted for as an investment in associate; however, Scotiabank also anticipates a Q1 2026 after‑tax loss of about CAD 300 million related primarily to foreign‑currency translation adjustments.

Key Details

• Transaction Structure: Transfer of Scotiabank’s retail banking operations in three countries to Davivienda; Scotiabank receives ~20 % equity in the new Davivienda Group holding company.
• Branding & Integration: Former Scotiabank operations will operate under the transitional “DAVIbank” brand in Colombia and Costa Rica, and under the Davivienda brand in Panama.
• Strategic Rationale: Provides Scotiabank with scale across its International Banking footprint; enables Davivienda to broaden its product offering and regional presence.
• Financial Impact – Scotiabank:
• Expected Q1 2026 after‑tax loss of ~CAD 300 million (primarily cumulative foreign‑currency translation losses, net of hedges).
• CET1 ratio expected to improve by roughly 10 basis points due to reduction in risk‑weighted assets from the Davivienda investment.
• Accounting Treatment: Scotiabank’s stake will be recorded as an investment in associate under IFRS/GAAP.
• Quotes:
• Scott Thomson, President & CEO, Scotiabank – highlighted the milestone for the International Banking strategy and anticipated profitability improvements.
• Francisco Aristeguieta, Group Head, International and Global Transaction Banking – emphasized combined capabilities and value creation.
• Javier Suárez, CEO, Davivienda Group – described the partnership as a powerful step forward to unlock growth opportunities.

Notable Quotes

“Reaching this milestone is key to delivering on our International Banking strategy… supporting continued improvement in our profitability across our international footprint.” – Scott Thomson, President & CEO, Scotiabank

“The closing of this transaction is a significant milestone in bringing together complementary capabilities, scale, and expertise to unlock the full potential of our combined value proposition.” – Francisco Aristeguieta, Group Head, International and Global Transaction Banking

“We are very excited about formalizing this strategic partnership with Scotiabank… positioned to deliver enhanced value for our stakeholders, scale our operations, and drive business growth.” – Javier Suárez, CEO, Davivienda Group