Scotiabank interested in Banco de Progreso

windeguy

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Jul 10, 2004
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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
 

william webster

Platinum
Jan 16, 2009
23,813
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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 .....
 

Tamborista

hasta la tambora
Apr 4, 2005
11,362
909
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Stop the presses, $166.4 Million!
That's probably the 2015 Jeepeta budget for the PLD.
 

Riva_31

Bronze
Apr 1, 2013
2,155
2
38
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.
 

william webster

Platinum
Jan 16, 2009
23,813
678
113
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
 
Jan 9, 2004
9,073
375
83
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
 
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jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
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.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
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0
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.
 
Jan 9, 2004
9,073
375
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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
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
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.
 

william webster

Platinum
Jan 16, 2009
23,813
678
113
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
Respectfully, PC2

they have been saying that about the check cashing business for 15-20 yrs.
Checks are dead, the US gov't will go checkless next year - in the next 5 yrs....... still hasn't happened.

The internet solves many issues, but people are funny about their money.
They wait for the same teller, on the same day every week.

Growth is growth and ScotiaBank sees something we don't (perhaps)
They make $1B /qtr........... doing something right.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Respectfully, PC2

they have been saying that about the check cashing business for 15-20 yrs.
Checks are dead, the US gov't will go checkless next year - in the next 5 yrs....... still hasn't happened.

The internet solves many issues, but people are funny about their money.
They wait for the same teller, on the same day every week.

Growth is growth and ScotiaBank sees something we don't (perhaps)
They make $1B /qtr........... doing something right.
The fact is checks are not going anywhere-the main reason is that some banks in the U.S. will no longer do international wire transfers as a result of the Dodd-Frank Regs. Checks have become even more useful than before!
 
Jan 9, 2004
9,073
375
83
Respectfully, PC2

they have been saying that about the check cashing business for 15-20 yrs.
Checks are dead, the US gov't will go checkless next year - in the next 5 yrs....... still hasn't happened.

The internet solves many issues, but people are funny about their money.
They wait for the same teller, on the same day every week.

Growth is growth and ScotiaBank sees something we don't (perhaps)
They make $1B /qtr........... doing something right.
I struggle to disagree with you, but my eyes and the banking reports I read see a different story.

BOA has closed almost 1,000 branches in the US. They, like many other banks are also doing away with their drive through operations.

Again, ask a millennial when was the last time they were at a branch....then ask them how they do their banking.

Perhaps Scotia, a well run institution, sees no/slow growth in Canada....think recession....and that the DR presents an opportunity for the next several years....before Internet banking, as opposed to the current branch banking model, takes hold.

Mauricio makes a very good point above. Check printers are consolidating and/or seeking other business lines as there are less and less checks written...as more and more transactions are electronic and online.

http://bankinnovation.net/2015/05/the-disappearing-check-how-long-until-the-end/



Respectfully,
Playacaribe2
 
Last edited:
Jan 9, 2004
9,073
375
83
The fact is checks are not going anywhere-the main reason is that some banks in the U.S. will no longer do international wire transfers as a result of the Dodd-Frank Regs. Checks have become even more useful than before!
Why won't some banks no longer do wire transfers? Best to ask those banks, why?

Dodd-Frank is not likely the reason, as the only portion of Dodd-Frank that has anything to do with wire transfers is the so-called Reg E. Reg E orders banks and any other wire transfer operators like WU, Vigo, etc., to fully disclose to the consumer up front all fees and the exchange rate Before the transaction is initiated. Too many money transferors were charging a low/no fee and making it back by giving consumers an unfavorable exchange rate.

Reg E of Dodd-Frank orders full disclosure....something banks have supported for a long time.


Respectfully,
Playacaribe2
 

OkieJoe

New member
Feb 15, 2013
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They are paying for the accounts and geographic foothold. It also doesn't hurt that they lose a competitor in the deal. The brick and mortars are just bonuses that will get scaled down as the times shift in the DR
 

chic

Silver
Nov 20, 2013
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banking is still big biz. here in the us and probably europe automation is coming...cells photo deposits...atm's debit cards...
 

william webster

Platinum
Jan 16, 2009
23,813
678
113
Banks are manifesting a different attitude... longer hours, more products.

RD needs that innovation.... perhaps that's what Scotia sees.

Canada has long has longer banking hours (Canada Trust started it).

In the US , Commerce went that route.

To nobody's surprise, TD Bank bought them - having the same marketing mentality.

Progreso and Scotia would be a good presence here -- IMO
 

Contango

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Dec 27, 2010
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BNS and TD have been core holdings of mine for many years.. DIVI coming up again next week..

But, as everyone knows their foreign BNS banks are not an advantage in anyway for Canadian's as far as I can see, they operate completely independently from Scotia Bank Canada, to the point they "discourage you" to opening up an Account if you are Canadian.. I'm with Scotia in Canada and BPD in the DR.. Would love to be able to keep large sums in BNS Caribbean with Canadian guarantee in case of bankruptcy.. NOT POSSIBLE.
 

william webster

Platinum
Jan 16, 2009
23,813
678
113
I can agree somewhat Tango.
When I arrived here (2008) I had a letter from BNS and a scheduled appt in Sto Dom.

I had my full list of necessary papers to open the account.
Oops, BNS of RD wanted two reference letters - a surprise.
Luckily, a call to my Cdn lawyers and two were faxed in 15 minutes.

But you're right, there is no connection between Canada & RD - separate entities in all ways.
And little, if any, benefit form being 'on both sides of the street', apart from the ATM conveniences.

Same goes for TD in the USA vs Canada............ no benefits , totally separate