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  1. #1
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    Default Scotiabank interested in Banco de Progreso

    Scotiabank interested in Banco de Progreso

    Bank of Nova Scotia, Canada’s third-largest lender by assets, is weighing a bid for Dominican Republic’s Banco Dominicano del Progreso SA, according to people familiar with the matter.

    Progreso has held early-stage informal talks with Toronto-based Scotiabank, said the people, who asked not to be identified because the matter is private. No final decision has been made and there’s no guarantee a deal will be reached, they said.

    Banco Dominicano del Progreso was founded four decades ago under the name Banco de Boston Dominicano, a division of First National Bank of Boston, according to a document on the company’s website. In the 1980s, a Dominican group bought out First National Bank, then in 2005, amid a crisis at the bank, the Vicini family took majority control. As of the end of 2014, it operated about 250,000 savings accounts at 57 branches.

    Latin American banks trade at a median price-to-book ratio of 1.5 times, suggesting Banco Dominicano del Progreso could fetch about $166.4 million, without a possible deal premium.

    Scotiabank, under Chief Executive Officer Brian Porter, has been focusing on Latin America for international growth, with an emphasis on Mexico, Colombia, Chile and Peru and “opportunistic” takeovers where the lender has operations. Porter has said the Dominican Republic, where the Canadian bank holds less than 10 percent market share, offers the greatest opportunity for growth in the Caribbean.

    In July, Scotiabank agreed to buy Citigroup Inc.’s banking operations in Panama and Costa Rica.

    Scotiabank has operated since 1920 in the Dominican Republic, where the lender has more than 90 branches and 2,000 employees, according to its website. The bank offers a range of services in the island nation, including personal, private, commercial and investment banking.

    Source: Bloomberg

    Dec 22, 2015

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  3. #2
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    Well isn't that good/interesting news for some

    Like ME !!!

    Any of you business types should look at the balance sheets & operations of these 5 Cdn Banks.
    They are well run & federally regulated.
    Not a hiccup in the mortgage meltdown .....

  4. #3
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    Stop the presses, $166.4 Million!
    That's probably the 2015 Jeepeta budget for the PLD.

  5. #4
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    They should open more branches along the country, there are still too many cities where they dont have branches. When they bough Banco Intercontinental a lot of their branches kept out of the transaction and closed.

  6. #5
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    perhaps that's the strategy....

    buy Progreso and POOF !.... more branches.

    Easier to buy a bank than build new branches to compete.
    buying get the bricks&mortar, the customers and an expanded network..... instantaneously.

    I'm all for it...
    speak to your friends in Toronto to keep it going

  7. #6
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    Quote Originally Posted by william webster View Post
    perhaps that's the strategy....

    buy Progreso and POOF !.... more branches.

    Easier to buy a bank than build new branches to compete.
    buying get the bricks&mortar, the customers and an expanded network..... instantaneously.

    I'm all for it...
    speak to your friends in Toronto to keep it going
    Scotiabank is a smart and well run bank.....and a review of their financials and long term stock chart confirms that.

    However, buying a bank with bricks and mortar branches (think expensive to operate) just to have a presence, is a 20th century banking move.

    Branches will be obsolete in the not to distant future....replaced by single person staffed financial center kiosks that do not make cash financial transactions. Many banks are divesting themselves of branches as more and more people migrate to online banking. More and more transactions will be conducted online and on smartphones. Ask a millennial if they have ever even gone to a bank branch?

    And going out further......ATM's and drive up windows days are also numbered.

    Took me awhile to accept what I had been seeing for years, but online banking, like online shopping will likely make bricks and mortar branches and stores in malls.....go the way of the dinosaur.

    The times they are a changing.


    Respectfully,
    Playacaribe2
    Last edited by playacaribe2; 12-28-2015 at 03:56 PM.

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  9. #7
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    Quote Originally Posted by windeguy View Post
    Scotiabank interested in Banco de Progreso

    Bank of Nova Scotia, Canada’s third-largest lender by assets, is weighing a bid for Dominican Republic’s Banco Dominicano del Progreso SA, according to people familiar with the matter.

    Progreso has held early-stage informal talks with Toronto-based Scotiabank, said the people, who asked not to be identified because the matter is private. No final decision has been made and there’s no guarantee a deal will be reached, they said.

    Banco Dominicano del Progreso was founded four decades ago under the name Banco de Boston Dominicano, a division of First National Bank of Boston, according to a document on the company’s website. In the 1980s, a Dominican group bought out First National Bank, then in 2005, amid a crisis at the bank, the Vicini family took majority control. As of the end of 2014, it operated about 250,000 savings accounts at 57 branches.

    Latin American banks trade at a median price-to-book ratio of 1.5 times, suggesting Banco Dominicano del Progreso could fetch about $166.4 million, without a possible deal premium.

    Scotiabank, under Chief Executive Officer Brian Porter, has been focusing on Latin America for international growth, with an emphasis on Mexico, Colombia, Chile and Peru and “opportunistic” takeovers where the lender has operations. Porter has said the Dominican Republic, where the Canadian bank holds less than 10 percent market share, offers the greatest opportunity for growth in the Caribbean.

    In July, Scotiabank agreed to buy Citigroup Inc.’s banking operations in Panama and Costa Rica.

    Scotiabank has operated since 1920 in the Dominican Republic, where the lender has more than 90 branches and 2,000 employees, according to its website. The bank offers a range of services in the island nation, including personal, private, commercial and investment banking.

    Source: Bloomberg

    Dec 22, 2015

    Oh that is just great-So poof there goes my local Banco Progreso ATM in Ferreteria Americana with $120/transaction to be replaced with Scotia Bank ATM-$200/transaction. Just great.

  10. #8
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    Quote Originally Posted by playacaribe2 View Post
    Scotiabank is a smart and well run bank.....and a review of their financials and long term stock chart confirms that.

    However, buying a bank with bricks and mortar branches (think expensive to operate) just to have a presence, is a 20th century banking move.

    Branches will be obsolete in the not to distant future....replaced by single person staffed financial center kiosks that do not make cash financial transactions. Many banks are divesting themselves of branches as more and more people migrate to online banking. More and more transactions will be conducted online and on smartphones. Ask a millennial if they have ever even gone to a bank branch?

    And going out further......ATM's and drive up windows days are also numbered.

    Took me awhile to accept what I had been seeing for years, but online banking, like online shopping will likely make bricks and mortar branches and stores in malls.....go the way of the dinosaur.

    The times they are a changing.


    Respectfully,
    Playacaribe2
    Have you been to a bank in the DR recently? I see people coming in and out with bundles and bundles of cash being both deposited and withdrawn.

    Your futuristic post may happen 50 years from now, but I don't see it right now.

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  12. #9
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    Quote Originally Posted by jimmythegreek View Post
    Have you been to a bank in the DR recently?

    No. I have online banking with BHD.
    I see people coming in and out with bundles and bundles of cash being both deposited and withdrawn.

    This will not happen overnight here.....but it is happening.
    Your futuristic post may happen 50 years from now, but I don't see it right now.
    The future is happening now.....it may take a little longer here......perhaps ten....but not fifty years. No worries though, Scotiabank can take a write down on all those closed branches.


    Respectfully,
    Playacaribe2

  13. #10
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    I agree with Playacaribe. In the coming ten years physical banking office should get less important in DR. Among my clients are all but one of the actual check printers of the country and they all know what's coming, printing checks has been good business, the CB gave it a boost for a few years more by changing the requirements for check formats, but it's less every year.

    Who will suffer greatly are malls who seem to see banks as a huge visitor puller, both the big malls as the small gallery style plaza's.

    Yes, banks are still ridiculously full about every hour of the day (also because of the huge inefficiency of the tellers and service personel, but this could be disrupted in a very short time. I think that only 5 years from now we will be looking at a whole different panorama.

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