Yahoo Finance Scotiabank taps Francisco Aristeguieta as head of international banking
The Bank of Nova Scotia is bringing in veteran banker Francisco Aristeguieta to run its international business, in the first major operational change since Scott Thomson became chief executive earlier this year.
Aristeguieta will take the helm on May 1, replacing Ignacio “Nacho” Deschamps, who is set to retire from Scotiabank by the end of the month after serving as international head since February 2016.
“As we look to refresh our strategy this year, Francisco will be a strong complement to our leadership team and will play a central role in helping us deliver long-term profitable and sustainable growth for our shareholders,” Thomson said in a press release.
Aristeguieta was previously chief executive of institutional services at Boston-based State Street Corp., managing over 85 per cent of the financial services company’s worldwide revenue. Earlier in his career, he oversaw the consumer and institutional sides of Citigroup Inc.’s Latin American and Asia Pacific regions with $15 billion in revenue.
Thomson had indicated he planned to make adjustments to the bank’s international strategy.
In January, during the RBC Capital Markets 2023 Canadian Bank CEO Conference, Thomson used his first public speech as incoming chief executive to say that the returns on Scotiabank’s international strategy haven’t always matched the risks.
Thomson blamed the lagging performance on the COVID-19 pandemic and suggested the bank needed to pivot away from the heavier weighting of unsecured loans in its international portfolio. He also pointed to Mexico as a strong example of what the rest of Scotiabank’s international business should aspire to with a market share of eight per cent, a return on equity that’s greater than 20 per cent and strong connectivity with Canada and the U.S.
Thomson also commended the work Deschamps did in strengthening the portfolio throughout his years leading the group at the January conference and in the April 10 statement.
John Aiken, senior analyst and head of research at Barclays Bank PLC, said Aristeguieta’s track record at State Street and Citi were impressive and that his addition would be a positive for the bank.
“Further, this move underscores our belief that new CEO Scott Thomson is reviewing the bank’s Latin American operations and that very little, aside from Mexico, is exempt from scrutiny,” Aiken said in an April 10 note.
“We would not be surprised to see additional changes as Mr. Thomson puts his stamp on the bank and we look forward to the public release of his strategic review, which we anticipate could come as soon as this fall,” he added.
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