The banking unit could be sold to a private-equity firm or other lender in the region, sources familiar with the matter told Bloomberg.
The move by the lender comes due to troubled banking market in Puerto Rico and to focus on other emerging markets in Latin America.
According to reports from the Federal Deposit Insurance (FDIC), the Scotiabank de Puerto Rico had 35 branches and $5.1bn in assets at the end of 30 June 2014.
This unit earned approximately $11m in the first half of 2014, after reporting a loss of around $6.7m in the corresponding period a year earlier, Bloomberg reported citing FDIC.
However, its profits fell by 16% to $401.5m in the quarter ended 31 July 2014, driven by volatile economy in Puerto Rico.
