The Bank of Nova Scotia (French: Banque de la Nouvelle-Écosse), commonly known as Scotiabank (French: Banque Scotia), is the third largest bank in Canada by deposits and market capitalization. It serves some 21 million customers in more than 55 countries around the world and offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets of $743 billion, Scotiabank shares trade on the Toronto and New York stock exchanges.
The bank was incorporated by the Legislative Assembly of Nova Scotia on March 30, 1832, in Halifax, Nova Scotia, with William Lawson (1772–1848) serving as the first president. The bank moved its executive offices to Toronto, Ontario, in March 1900. Scotiabank has billed itself as "Canada's most international bank" due to its acquisitions primarily in Latin America and the Caribbean, but also in Europe and India as well. BNS Institution Number (or bank number) is 002. The company ranked at number 84 on the Forbes Global 2000 listing in 2013 and is currently under the leadership of Brian J. Porter who serves as CEO and President.
Scotiabank was founded in Halifax, Nova Scotia, in 1832 under the name of the Bank of Nova Scotia. The bank's vision was to facilitate the trans-Atlantic trade of the time. Later, in 1883, Bank of Nova Scotia acquired The Union Bank of Prince Edward Island, although most of the bank's expansion efforts in the century took the form of branch openings.
The bank launched its branch banking system by opening in Windsor, Nova Scotia. The expansion was limited to the Maritimes until 1882, when the bank moved west by opening a branch in Winnipeg, Manitoba. The Manitoba branch later closed but the bank continued to expand into the American Midwest. This included opening a branch in Minneapolis in 1885 which later transferred to Chicago in 1892. Following the collapse of the Commercial Bank of Newfoundland and Union Bank of Newfoundland on December 10, 1894; the Bank of Nova Scotia established on December 15, 1894, in Newfoundland,
In the meantime, the bank opened a branch in Kingston, Jamaica, in 1889 to facilitate the trading of sugar, rum and fish. This was Scotiabank's first move into the Caribbean and historically the first branch of a Canadian bank opened outside of the United States or the United Kingdom. By the end of the 19th century, the bank was represented in all of the Maritimes, Quebec, Ontario and Manitoba.
The bank continued to expand in the 20th century, although its growth now took the form of acquisitions rather than branch openings.
1906 – The bank opened a branch in Havana, Cuba. By 1931, it had five branches in Havana, and one branch each in Camagüey, Cienfuegos, Manzanillo, and Santiago de Cuba. In 1960, the Government of Cuba nationalized all banks in Cuba and the Scotiabank withdrew services from all 8 branches.
2012 - Scotiabank enters in an agreement to acquire ING Bank of Canada from ING Groep N.V.
In its early expansion, the bank clearly followed trade and its customers' businesses rather than pursuing a strategy of expansion into international financial centres. Scotiabank is a member of the Global ATM Alliance, a joint venture of several major international banks that allows customers of the banks to use their ATM cards or check cards at certain other banks within the Global ATM Alliance without fees when traveling internationally. Other participating banks are Barclays (United Kingdom), Bank of America (United States), BNP Paribas (France and Ukraine through UkrSibbank), Deutsche Bank (Germany), and Westpac (Australia and New Zealand).
Throughout the 20th century, the bank grew not only in size, but also in breadth of products and services. Progress was conditioned by changing consumer needs, legal changes, or acquisitions of external service providers. A short list follows:
Many former branches of Montreal Trust and National Trust were rebranded "Scotiabank & Trust", and continue to operate as such.
David Berry $100M wrongful dismissal lawsuit
In June 2005, David Berry, a very successful Canadian Scotiabank trader who had built a $75M/yr business in trading preferred shares was fired on the grounds that he had committed securities regulatory violations.
At the time, as part of a 20% direct drive deal, he was making more than double the CEO's salary and Scotiabank management had already taken steps to limit his compensation.
The regulatory violation allegations from his former employer, left him unemployable to Scotia's competitors despite the appeal of potentially adding $75M/year+ to their equity trading profits.
Documents delivered to the media showing that Scotia management had sought advice on terminating Berry prior to the Investment Industry Regulatory Organization of Canada (IIROC) violation accusation, and the results of questioning during the IIROC inquiries strongly suggest that the securities charges were part of a clever plan by Scotiabank senior management to remove Berry from his position and simultaneously prevent him from becoming their competitor.
In a ruling on January 15, 2013, more than seven years after the initial accusation, a hearing panel of the IIROC dismissed all charges against Berry.
Canadian Banking provides a full suite of financial advice and solutions[PR slang], supported by an excellent customer experience, to over 7.5 million personal and business customers across Canada, via 1,037 branches, 3,527 automated banking machines, as well as internet, mobile and telephone banking, specialized sales teams, and third party channels.
Canadian Banking comprises two main businesses:
Retail and Small Business Banking provides financial advice and solutions[PR slang] to individuals and small businesses, such as day-to-day banking products, including debit cards, deposit accounts, credit cards, investments, mortgages, loans, and related creditor insurance products.
Commercial Banking delivers advisory services and a full solutions[PR slang] suite to medium and large businesses including a broad array of lending, deposit and cash management solutions[PR slang].
International Banking encompasses Scotiabank's retail and commercial banking operations in more than 55 countries outside Canada – an international presence unmatched by other Canadian banks. This business line has operations in Latin America, the Caribbean and Central America, and Asia, with more than 73,000 employees (including subsidiaries and affiliates). A full range of personal and commercial financial services is provided to over 13.5 million customers through a network of over 3,000 branches and offices, 7,516 ABMs, mobile, internet and telephone banking, in-store banking kiosks, and specialized sales forces.
Global Banking and Markets
Global Banking and Markets (GBM) is the wholesale banking and capital markets arm of the Bank. It offers an extensive number of products to corporate, government and institutional investor clients. GBM is a full-service lender and investment dealer in Canada and Mexico and offers a wide range of products in the U.S., Central and South America, and in select markets in Europe and the Asia-Pacific region.
GBM provides corporate lending, equity and debt underwriting, and mergers and acquisitions advisory services, as well as capital markets products and services, such as fixed income, derivatives, prime brokerage, securitization, foreign exchange, equity sales, trading and research, energy and agricultural commodities and, through ScotiaMocatta, precious and base metals.
Global Wealth & Insurance
Scotiabank's Global Wealth & Insurance (GWI) business line combines the Bank's wealth management and insurance operations in Canada and internationally, and Global Transaction Banking. GWI is diversified across multiple geographies, product lines and strong businesses.
Global Wealth is an integrated business including asset management and client-facing businesses.
The asset management business is focused on developing innovative investment solutions[PR slang] for both retail and institutional investors.
The global client-facing wealth business units include private client, online and full service brokerage, institutional client services and the independent advisor channel. Its focus is on providing advice and solutions[PR slang] for clients in Canada and internationally.
Global Insurance has four main businesses in Canada: creditor, life and health, home and auto and travel. Internationally, a full range of insurance products (creditor, non-creditor, life and health, and property) are sold to bank customers through a number of different Scotiabank channels.
Global Transaction Banking (GTB) is a virtual business offering comprehensive business solutions[PR slang] – cash management, payment services, electronic banking, business deposits, and trade services – on a global basis to the small business, commercial and corporate customers of the Bank. It also provides correspondent banking products and services to other financial institutions globally. The results of this unit are included in Canadian Banking, International Banking and Global Banking and Markets.
As of 2013, Scotiabank services over 21 million customers and has over $743 billion in assets. The bank employs over 83,416 employees all over the globe including: Europe, Asia, Latin America and the Caribbean. Scotiabank is Canada's most international bank with 3,338 branches and offices in some 55 countries.
Scotiabank currently is the title sponsor for running events that are part of the Canada Running Series: Scotiabank Montreal 21k & 5k (April), Vancouver Half-Marathon & 5k Run/Walk (June) & Toronto Waterfront Marathon, Half-Marathon & 5k (September) and the Scotiabank Bluenose Marathon. As well it is the title sponsor for the Scotiabank Calgary Marathon.
As of October 2007, Scotiabank became a sponsor of CBC Television's Hockey Night in Canada, and the title sponsor of its Gemini award winning pregame show, Scotiabank Hockey Tonight.
Since 2005, Scotiabank has been the title sponsor of the CFL playoffs semi-final and conference final games, with games titled as the Scotiabank East Semi-Finals and Scotiabank West Semi-Finals. This is in addition to being the official financial services provider to the Canadian Football League.
Since 2008, Scotiabank has been the official team sponsor of Canadian Cricket Team and the title sponsor of National T20 Championship in Canada.
In 2007, Scotiabank and Cineplex Entertainment partnered up to create a loyalty rewards program called SCENE. The program allows patrons to sign-up for a special card that grants them points which can be redeemed for free movies or concession discounts. Scotiabank customers can also request for a SCENE debit card which gives them points when used. A SCENE VISA card was also launched in early May. Five Cineplex Entertainment locations were rebranded as "Scotiabank Theatres".
From 2007 to 2010, Scotiabank was the title sponsor of the Scotiabank Nuit Blancheevent in Toronto.
In 2008, Scotiabank became the title sponsor of Toronto's Caribana now known as the Scotiabank Caribbean Carnival Toronto extends partnership until 2012 with the possibility of extending the partnership for another 2 years.
The Scotiabank Bright Future program is the Bank's global philanthropic vision. The Bank's multinational reach has provided a unique opportunity to help people around the world through corporate giving and employee-volunteer programs that span across six pillars: education, healthcare, social services, arts and culture, sports and environment.
Over the last five years, the Bank has provided approximately $47 million annually to community causes around the world. Scotiabank's employees spent more than 500,000 hours in 2012 volunteering and fundraising through formal community programs.
Scotiabank 's corporate social responsibility EcoLiving program, encourages and facilitates environmentally preferable construction and renovation of homes. The company also has internal programs related to environmental responsibility and ethical financial and lending practices.
On November 6, 2006, two homemade bombs were placed within Scotiabank branches in Mexico City. One exploded, resulting in no deaths, while a second bomb was de-activated. Authorities were previously alerted to the presence of the bombs. A coalition of five leftist guerilla groups which support (but had no known connections to) protests in Oaxaca claimed responsibility.
In December 2006, Scotiabank announced it successfully acquired majority control of the fourth largest Jamaica-based Securities dealer Dehring Bunting & Golding Ltd. (DB&G) ending weeks of speculation about the bid on the Jamaica Stock Exchange. The deal is expected to cost the Bank of Nova Scotia and its Jamaican subsidiary between C$80 – $90 million to close the deal.
On August 31, 2007, Scotiabank announced it has signed agreements to purchase 79 per cent of Banco del Desarrollo, Chile's seventh largest bank for US$810 million. These agreements are the first stage in a plan to purchase up to 100 per cent of Banco del Desarrollo. Scotiabank will be making a public share offering on the same terms and expects to acquire up to 100 per cent of Banco del Desarrollo, which would be valued at US$1.03 billion.
In July 2008, E*TRADE sold its Canadian division to Scotiabank for CAN$444 million, as part of a program of selling off non-core assets. Scotiabank is investigating the expansion of the E*Trade service to their Caribbean markets as well.
In 2010 a panel for the World Intellectual Property Organization (WIPO) ruled that Scotiabank as the sponsors of the Caribana festival, did not have grounds for being awarded the domain name caribana.com from its current owners Working Word Co-operative.
Soon after Canadian regulators gave the go ahead for Canadian banks to begin mergers and acquisitions, Scotiabank announced it would takeover Commerzbank AG's Brazilian wholesale banking unit. This information was released on September 16, 2010.
Scotiabank announced on September 27, 2010, that they would be purchasing Royal Bank of Scotland's Chilean wholesale banking unit worth around $900 million in assets.
On December 2010, Scotiabank continues to expand its presence in Latin America acquiring the UruguayanNuevo Banco Comercial, becoming the first Canadian bank with presence in the country
On October 20, 2011, Scotiabank acquired a 51% stake in Banco Colpatria, Colombia's fifth largest bank and second largest issuer of credit cards for the tune of 1 billion Canadian in Cash and stock (10 million shares). It is the second largest foreign transaction ever by a Canadian financial company overseas, behind Royal Bank of Canada's purchase in Royal Bank of Trinidad and Tobago.
On August 29, 2012, Scotiabank announced that it would acquire ING Direct Canada for $3.13 billion. The sale was completed on November 15, 2012.
Scotiabank has a strong presence in Thailand through its 49% owned affiliate Thanachart Bank. With the recent acquisition of Siam City Bank, Thanachart Bank is now the 5th largest bank in Thailand with over 16,000 staff serving almost 4 million customers through 680 branches and 2,100 ATMs across the country.
^El Akkad, Omar (April 26, 2010). "Scotiabank fails in bid to snag Caribana domain name". The Globe and Mail. Retrieved May 9, 2010. "Scotiabank's unsuccessful attempt to gain control of the potentially lucrative website name became the basis for a case before the global tribunal that resolves such domain name disputes – a case that lawyers say could have set a wide-ranging and controversial precedent."