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 more than 21 million customers in over 55 countries around the world and offers a broad range of products and services including personal and commercial banking, wealth management, corporate and investment banking. With assets of $783 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 41 on the SNL Financial World's 100 biggest banks listing, September 2013 and is currently under the leadership of Brian J. Porter who serves as President and CEO.
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 eight branches.
2012 - Scotiabank enters into an agreement to acquire ING Direct 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 banking solutions, supported by an excellent customer experience, to personal and business customers across Canada. Scotiabank also provides an alternative self-directed banking solution through Tangerine.
International Banking provides a full range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada, supplemented by additional products and services offered by Global Banking & Markets and Global Wealth & Insurance to meet customers’ needs.
Global Wealth & Insurance (GWI) combines the Bank’s wealth management and insurance operations in Canada and internationally, and Global Transaction Banking. GWI is diversified across geographies and product lines.
Global Banking & Markets, Scotiabank’s wholesale banking and capital markets arm, offers a wide variety of products and services to corporate, government and institutional investor clients globally.
As of 2013, Scotiabank services more than 21 million customers and has over $783 billion in assets. The bank employs more than 83,000 employees all over the globe including: Europe, Asia, Latin America and the Caribbean. Scotiabank is Canada's most international bank with 3,322 branches and offices in over 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 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".
In 2007, Scotiabank became the title sponsor of the Nuit Blancheevent in Toronto. The sponsorship continues as of 2014.
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 two 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.
In 2013, the Bank contributed $62 million in donations and sponsorships to community causes around the world. Scotiabank's employees spent 424,000 hours in 2013 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 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.