Scotiabank will hand over its operations in Colombia, Costa Rica and Panama to Colombian bank Davivienda, both parties said on Monday, in exchange giving Scotiabank a 20% stake in Davivienda. It marks Scotiabank's latest move to refocus on its core markets.

In return for the transfer of operations, Scotiabank will gain around a 20% stake in Colombia lender Davivienda.

(TSX: BNS), commonly known as Scotiabank, announced an agreement to transfer its banking operations in Colombia, Costa Rica, and Panama to Davivienda, a prominent Latin

Scotiabank will hand over its operations in Colombia, Costa Rica and Panama to Colombian bank Davivienda, both parties said on Monday, in exchange giving Scotiabank a 20% stake in Davivienda. The move is part of Scotia's push to slim down operations in non-core markets,

Scotiabank becomes a shareholder, with approximately 20% of all Davivienda operations and participation in its board of directors. This was reported by several Colombian and Costa Rican media. This transaction not only represents one of the largest recent financial sector agreements,

Scotiabank is selling its holdings in Colombia, Panama and Costa Rica to Colombian bank Banco Davivienda as it looks to reorganize its Latin American businesses. (Credit: Cole Burston)

Bank of Nova Scotia agreed to transfer its operations in Colombia, Costa Rica and Panama to Banco Davivienda SA of Colombia, saying it will take an after-tax charge of C$1.4 billion ($980 million) as a result.