Scotiabank buys stake in Chinese bank

Scotiabank has announced the purchase of a 19.99% stake in the Bank of Guangzhou, at a price of C$719 million. The Chinese bank is not publicly listed, and Scotia secured the stake through auction.

The Bank of Guangzhou has assets of C$24 billion and customer deposits of C$16 billion (as at the end of June 2011). It is the 29th largest bank in mainland China, with a network of 84 branches and offices centered.

“With this investment we can build on Scotiabank’s international presence and experience in China and combine our core strengths in wealth management, personal and commercial operations with our new partners,” said Rick Waugh, president and CEO of Scotiabank. “Asia is a region of strategic importance for Scotiabank and enhancing our investment in China supports our long term growth strategy.”

Scotia expects the investment will be accretive to earnings in 2012, assuming it passes regulatory review.

Staff

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