Scotiabank closing several branches in Caribbean

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Scotiabank closing several branches in Caribbean

CMC – Canada’s Scotiabank has announced plans to shut or shrink 120 branches, largely in Mexico and the Caribbean, in a bid to save CAN$120 million (One Canadian dollar =US$0.87 cents) annually.

The bank said it would close down 35 of its 200 branches in the Caribbean and would sever 1, 500 full-time employees, including 500 from its international operations.

“In some of these (Caribbean) countries, we are just overbranched and we have to size it to the economic realities of these economies,” said Scotiabank chief executive officer, Brian Porter.

Porter said that the bank’s revenue growth has been encouraging outside Canada, but profit has not jumped as much he would like.

“The frustration for us across the international footprint is we’ve had very solid asset growth over the last three or four years, and not all of that has dropped to the bottom line,” he said, adding that the bank still has plans to grow in the region.

Scotiabank said the closure of the Caribbean branches were due “to the prolonged economic recovery and continued uncertain outlook” and that it had started restructuring initiatives “in order to improve the speed and quality of service it provides its customers, to reduce costs in a sustainable manner, and to achieve greater operational efficiencies.

“The bank intends to record a restructuring provision of approximately CAN$148 million in the fourth quarter. The majority of the restructuring provision relates to employee severance charges in the bank’s Canadian banking and international banking divisions and will affect people at all levels of the organisation.”

The statement said “in international banking, the charges are primarily for closing or downsizing approximately 120 branches, which will allow us to focus on high-growth markets, minimise branch overlap, and realise synergies resulting from recent acquisitions.”

Scotiabank made a record CAN$6.7-billion net income in 2013.

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13 COMMENTS

  1. Kenny is a economy killer, his socialist experiment is a complete failuer. NICE, SMILE and with the dying economy DEAD.

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  2. i honestly do not think that you stlucians know how the banking system works. the decision by scotia bank is not one which was caused by the stlucian branches. scotia is cutting branches accross the caribbean. sometimes i dont think you people read and analyze what is said. yall are to quick to comment! an island like trinidad as over 24 branches with an operating expense bill which is 46.7% of its income. this is extremely high. expect there to be alot of downsizing in this island. as it relates to stlucia, we only have 3 branches. a few jobs may be cut but all is well. scotia is the most profitable bank in stlucia. 1500 employees in total from canada, central america and the caribbean in general will be cut. how is this a local issue? the rbtt/rbc thing, that bank. rbc in particular, has not been innovative for a long time. most of the poor decisions as to why our local banks are failing is due to poor management. this has nothing to do with government. stlucians are always quick to blame a government for all issues. as a populace we do not read and analyse to educate ourselves. we will always remain and show the world that we are ignorant because of this. lucians come on!

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  3. when online banking could happen that easy y would u need all these tellers plus it"s a changing world .oh sorry I forgot Kenny is to blame .

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  4. So that mean Dominica in that to. So wat about people money that inside there wat go become of it. All u taking it an go; that all u up to. My dollars I work hard 4 That not right ok

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  5. 6.7 billion profit of other people's money is not enough for Scotia CEO to fly his jet or fancy boat an throw lavish parties he needs d employees money to so, to him CEO means CUT EMPLOYMENT OPERTUNITIES by any means necessary.

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  6. Your profit didn't jump to what you expected; but you did made a profit though. Why should your staff suffer? A record 6.7 billion dollars in NET profit and you're not satisfy. Damn,Damn you SCOTIA BANK. To think that I have my mortgage with you and you contributing to the suffering of the workers;; SMH, SMH, SMH

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  7. nobody eh blame kenny yet lol....i thought kenny was responsible for every single thing wrong with the world............

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  8. RBTT down sizing, Scotia down sizing, more employed people with loans will be sent home,less money circulating in our local economy. What should we expect for the future.. (could you imagine our diminishing banking sector further reducing to a situation like - Super J, JQ's monopoly). We have 3 branches in St Lucia, I hope this decision does not affect us

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