Scotiabank says Mexico operations stable, no impact from violence

The Bank of Nova Scotia, or Scotiabank, signage is pictured in the financial district in Toronto. THE CANADIAN PRESS/Andrew Lahodynskyj

Bank of Nova Scotia executives said on Tuesday the Canadian lender’s operations in Mexico were stable and had seen no impact on business after unrest triggered by the killing of cartel leader Nemesio Oseguera, known as “El Mencho,” in a military raid.

CEO Scott Thomson said all branches were open as of Tuesday.

“We’ve seen a much more stable environment this morning than we did yesterday, and in terms of our employees and our clients, everyone’s safe ... we don’t see a huge impact, or any impact, (going) forward from a financial performance perspective,” Thomson told analysts.

READ MORE: Security forces keep up fight with cartel gunmen a day after the Mexican military killed ‘El Mencho’

The bank said it was not concerned about specific exposures in the tourism sector.

“We are not actively participating in resort financing of any kind ... we exited that business a long time ago. We’re very selective when we choose to do anything of the sort,” said Francisco Aristeguieta, head of international banking.

Scotiabank has operated in Mexico for decades and has made the country a key part of its strategy as it focused on North American trade.

WATCH: What does the killing of ‘El Mencho’ mean for the future of Mexican cartels?

The bank operates nationwide with more than 400 branches and over 2,000 ATMs.

Reporting by Nivedita Balu in Toronto, Reuters