Scotiabank’s stake in TBank has a carrying value of around $1.7bn, according to media sources.
TBank’s deposit products include saving deposits, fixed deposits, negotiable certificate of deposits, tax free deposits, current deposits, and foreign currency deposits.
The Thai bank’s loan portfolio comprises secured and unsecured personal loans; educational loans, housing loans, and automobile hire purchase loans; and loans for corporate customers and small and medium-sized enterprises .It also offers trade finance services, which include import letter of credit, trust receipt, collection agency of D/P and D/A for oversea buyers.
Commenting on the plans, Scotiabank said in a statement: "As part of a strategic shift in the direction of Scotiabank’s Asia Pacific operations, led by the realignment of regional operations under the global banking and markets business line, Scotiabank may consider strategic options for its 49% stake in Thanachart Bank."
Scotiabank may begin a formal sale process early next year if it plans to go forward with stake sale, Bloomberg reported citing people familiar with the matter.
However, Scotiabank has not yet finalized the decision on the sale.
Scotiabank said that it will continue to maintain a good working partnership with Thanachart Capital, which owns a 51% stake in TBank.
TCap is aware of Scotiabank’s consideration of strategic options and is open to considering proposals that are also in the interest of TCap and TBank’s customers, employees, shareholders and regulators.
Meanwhile, Scotiabank is focusing on expanding its business in the Latin American market.
Image: Bank of Nova Scotia is the third largest bank in Canada. Photo: courtesy of Verne Equinox / Wikipedia.
