Scotiabank
- (en)
Scotiabank (TSX: BNS NYSE: BNS), formally known as The Bank of Nova
Scotia, is one of Canada's Big Five banks. It is the third largest
bank in Canada by assets (behind the Royal Bank of Canada and TD Bank
Financial Group), and the second largest by market capitalization (behind
only RBC).
History
View of a ScotiaBank facade in Amherst, Nova Scotia. This structure
was erected in 1907.Founded in Halifax, Nova Scotia in 1832, the bank
launched its branch banking system by opening in Windsor, Nova Scotia.
The expansion was limited to the Maritime Provinces until 1882, when
the bank moved west by opening a branch in Winnipeg, Manitoba. The
Manitoba branch later closed but the experience of doing business in a
grain-town encouraged the Bank to expand into the American Midwest,
including Minneapolis and Chicago.
Scotiabank also operates locations throughout Mexico under the name
"Scotiabank Inverlat" and deals in all aspects of personal
banking, business banking, and property and auto loans.
By 1900, The Bank of Nova Scotia had opened 38 branches across Canada,
the United States and Jamaica. In Canada, the Bank was represented in
all of the Maritime Provinces, Quebec, Ontario and Manitoba. In 1892,
the Bank of Nova Scotia became the first Canadian bank to establish in
Newfoundland – 55 years before the dominion joined Confederation.
Early international expansion
1885 - The bank opens its first branch outside Canada in Minneapolis.
1889 - The bank opens a branch in Kingston, Jamaica, the first branch
of a Canadian bank outside Canada, the US, or the UK. By 1931 it has
12 branches in Jamaica.
1892 - The bank closes its branch in Minneapolis and transfers the
business to the agency that it opens in Chicago, Illinois.
1899 - The bank opens a branch in Boston.
1906 - The bank opens a branch in Havana, Cuba.
By 1931 it has three branches in Havana, and one branch each in
Camaguey, Cienfuegos, Manzanilla, and Santiago de Cuba.
1907 - The bank opens an agency in New York.
1910 - The bank opens a branch in San Juan, Puerto Rico, and later
another one in Fajardo.
1920 - The branch opens a branch in London, and another in Santo
Domingo, Dominican Republic.
In its early expansion the bank clearly followed trade and its
customers' business, rather than pursuing a strategy of expansion into
international financial centers.
Mergers
The Bank has amalgamated with several other Canadian financial
institutions through the years:
Bank Year established Year of amalgamation
Union Bank of PEI 1864 1883
Summerside Bank 1863 1901
Bank of New Brunswick 1820 1913
Metropolitan Bank of Canada 1902 1914
The Bank of Ottawa 1874 1919
Montreal Trust 1889 1994
National Trust 1898 1997
National Bank of Greece (Canada) 1969 2005
Many former branches of Montreal Trust and National Trust were
rebranded "Scotiabank & Trust", and continue to operate
as such.
Operating Units
Scotia Plaza, Scotiabank Headquarters in Toronto, Ontario,
CanadaScotiabank has four divisions:
Domestic Banking is the commercial banking division, offering savings
and loan services. It includes 970 branches, 2,750 ABMs, and 3 call
centres. It offers telephone, wireless and Internet banking. Their
brokerage unit is called the Wealth Management Group.
Scotia Capital Inc. is the investment banking division, which helps
large corporations, institutions, and governments obtain capital and
credit. The Canadian investment banking division is known as
ScotiaMcLeod (formerly known as McLeod, Young and Weir), and metals
trading is done under the name of ScotiaMocatta.
International Banking is the merchant banking division, assisting its
customers with international trade. Scotiabank's marketing material
claims it is the leading provider of financial services in the
Caribbean, and that it has the broadest Asian network of any Canadian
bank.
e-Commerce/e-Banking at Scotiabank manages wire transfers and payments.
In 2005, Scotiabank services over 12 million customers and has over
286 billion dollars in assets. The bank employs over 57,000 employees
all over the globe including Europe, Asia, Latin America and the
Caribbean. Scotiabank is Canada's most international bank with over
2000 branches in 50 countries. As in the past, in 2006 some of the top
management at Scotiabank announced a plan that it would once again
play a part in general infrastructural development in the countries
where it operates.
Current Events
In 2006 Scotiabank was awarded the title as the official bank for the
ICC's 2007 Cricket World Cup. During the event, several stadia and
venues across the Caribbean (and Guyana in South America) are to
become outfited with Scotiabank automated banking machines.
On November 6th, 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 do not lead) 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 it's Jamaican subsidiary
between C$80 - $90 Million dollars to close the deal.
Awards
2005 - "Bank of the Year" - For Mexico, the Caribbean and in
Jamaica by Latin Finance (magazine).
