Three years after the sale of Scotiabank Guyana to Republic Bank was blocked by the Guyana Government, Scotiabank has announced its sale to a new buyer, First Citizens Bank of Trinidad and Tobago.
In a statement this afternoon, Scotiabank announced that it has reached an agreement for the sale of its banking operations in Guyana to First Citizens Bank Limited.
The bank said the agreement is subject to regulatory approval and customary closing conditions.
According to Scotiabank, the transaction supports its strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the highest value for customers.
Scotiabank’s current operations in Guyana encompass four branches and approximately 180 employees. The employees were informed of the sale this afternoon at a meeting.
The bank has assured that when its sale and closure is finalised, all employees will continue to support the business.
First Citizens is one of the leading financial services groups in the English-speaking Caribbean. Headquartered in Trinidad and Tobago, First Citizens offers a full range of retail, corporate and investment banking services as well as wealth management, trustee and brokerage services.
It has branches in Barbados, Costa Rica, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago.
According to Scotiabank, the agreement with First Citizens supports First Citizens strategic growth across the region and leverages its strengths in innovation and excellence to the benefit of all stakeholders.
The bank has indicated that until regulatory approvals are obtained and the transaction closes, Scotiabank’s operations in Guyana will continue as usual.
FirstC itizens and Scotiabank have indicated that they will work together to facilitate a smooth transition for the business.
Back in 2018 when Scotiabank first announced the sale of the majority of its Caribbean operations, an agreement was reached for Republic Bank to take over the operations.
But the Government of Guyana immediately raised its concern and pointed out that with Republic Bank currently holding 35.4% of the banking systems assets and 36.8% of deposits in Guyana, its acquisition of Scotiabank would push its stake in the local banking sector to 51% of both assets and deposits.