Scotiabank to sell operations in El Salvador to Imperia
Scotiabank announced that it has reached an agreement under which Scotiabank will sell its banking and insurance operations in El Salvador, including Scotiabank El Salvador, its subsidiaries and Scotia Seguros, to Imperia Intercontinental Inc., subject to regulatory approval and customary closing conditions. Imperia is the main shareholder of Banco Cuscatlan S.A and Seguros e Inversiones S.A. in El Salvador. The decision is driven by the bank's strategy to focus on key markets which can generate greater scale for Scotiabank. This transaction is expected to result in an after-tax loss of approximately $170M that primarily represents the carrying value of goodwill relating to this business and will be recorded in Q2 2019. Upon closing, Scotiabank's common equity Tier 1 ratio will increase by approximately 6 basis points. Until regulatory approvals are obtained and the transaction closes, all operations, branches and products will continue to operate as usual.