Banking News

Scotiabank to Exit Malaysia

(8 February 2022 – Malaysia) Bank of Nova Scotia (Scotiabank), which is wholly-owned by Canada’s third-largest lender by assets, has been winding down its operations and will exit Malaysia by year end.

The bank primarily focuses on corporate banking and saw its assets decline over recent years. Scotiabank holds assets of RM1.28 billion as at July 31 2021, compared with under RM5 billion eight years earlier.

“The holding company [Bank of Nova Scotia] has decided to wind down its operations in Malaysia and, in July 2021, the board of directors approved the bank’s wind-down plan. Arising from this, the bank has recognised RM26.26 million of wind-down cost [in 3QFY2021],” according to a review of the bank’s quarterly performance.

The wind-down cost comprised a provision of RM21 million in severance payments as well as impairment of property and equipment worth RM2.6 million, the financial publication reported.

There are currently 26 commercial banks in Malaysia, of which 18 (including Scotiabank) are foreign-owned.