Scotiabank plans Taiwan exit as Asia revamp continues

TAIPEI/ TORONTO• Bank of Nova Scotia, Canada’s third- largest bank, has applied to Taiwan’s financial regulator to exit the local market, the regulator and bank said on Monday, part of a revamp of its Asia strategy.

Scotiabank has been rejigging its operations and shifting focus along with other rivals in the Canadian banking sector, as they deal with a slowdown in their home economy and the fallout from weaker oil prices. Analysts have said Central and South America may become Scotiabank’s main focus outside Canada.

Scotiabank said its Taiwan office is being closed as part of a recent review of its ac- tivities in the Asia Pacific region, which it said remained an important part of its corporate, investment banking and capital markets business.

“We continually review our operations to drive efficiency and competitiveness, as well as to ensure we are meeting the needs of our customers,” Scotiabank said in an emailed statement.

An FSC spokesman confirmed that it had received notice from the bank of its intent to leave the market.

The bank said in December that it may consider selling its 49 per cent stake in Thai auto loan provider Thanachart Bank PCL, which is majority owned by Thanachart Capital PCL, in a bid to boost its capital ratios. A source familiar with the matter told Reuters at the time that Scotiabank was weighing the sale as it found managing an Asian retail presence cumbersome.

The Toronto- based bank has t he broadest i nternational presence of all Canadian banks, but its operations in Asia account for only a fraction of its overall revenues. Its revenues from Asia were $ 394 million in fiscal 2015, accounting for just 4.5 per cent of its international banking revenue.

Shares in Scotiabank closed up 0.48 per cent at $66.67 Monday in Toronto.