The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Scotiabank (Bahamas) has no plans to list on the Bahamas International Securities Exchange (BISX), leaving it as the only local commercial bank that has not offered an equity stake to the Bahamian public.

Kevin Teslyk, Scotiabank (Bahamas) managing director, said the Canadian-owned institution was focused more on its customers and “business opportunities” in the Bahamian commercial banking market, rather than offering a minority ownership interest to local retail and institutional investors.

Explaining that Scotiabank wanted to retain majority ownership wherever it operated in the world, Mr Teslyk said of a Bahamian initial public offering (IPO) and subsequent BISX listing: “It’s not something we have actively discussed or explored.

“Our preference is to remain focused on customers, adding employees and business opportunities in the market. Scotiabank is the strongest capitalised bank” in the Bahamas.

All other Bahamas-based commercial banks are public companies, although only Commonwealth Bank has a widely-dispersed ownership structure. All others have either a single shareholder or group of like-minded shareholders retaining majority control.

Scotiabank’s two Canadian counterparts are listed, although under 5 per cent of CIBC FirstCaribbean International Bank (Bahamas) issued ordinary share capital is in public hands.

It is a similar story with FINCO, Royal Bank of Canada’s mortgage arm, where 22 per cent of the equity is with Bahamian investors.

Mr Teslyk, acknowledging that 30 per cent of Scotiabank (Jamaica) was listed on that country’s stock exchange, said the bank had employed different ownership strategies around the world.

Emphasising that any Bahamas listing would be designed to merely introduce some Bahamian ownership, not raise capital, Mr Teslyk said both CIBC FirstCaribbean’s and FINCO’s listings were designed to achieve the latter aims.

In Scotiabank’s case, he said: “The preference is to have majority ownership, which allows us to deploy capital and react more quickly.”