Bank of Nova Scotia to cease Malaysia operations

 

The Bank of Nova Scotia Bhd is exiting Malaysia 49 years after it commenced operations. (Reuters pic)

PETALING JAYA: The Bank of Nova Scotia Bhd (Scotiabank) will cease operations in Malaysia before the end of the year.

Quoting sources, The Edge Markets reported that staff of the bank had been informed of the impending closure.

The bank, which mainly does corporate banking, commenced operations in the country in 1973 before becoming a locally incorporated entity 21 years later.

Scotiabank currently has a sole branch in Kuala Lumpur. It used to have five branches in 2007.

According to The Edge Markets, the bank alluded to the wind down in its financial statement in October last year.

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.

In April last year, Citigroup Inc announced the group’s decision to exit retail banking in 13 markets worldwide, including Malaysia.

The group is selling its consumer banking businesses in Malaysia, Thailand, Indonesia and Vietnam to United Overseas Bank. - FMT