Scotiabank Chile

What it is

Scotiabank has been present in Chile since 1990, following the acquisition of a minority interest in Banco SudAmericano — a lender whose own roots stretch back to 1944. In 2018 the Canadian group completed its acquisition of a 68.19% stake in BBVA Chile, which doubled its share of the Chilean loan market to approximately 14% and made it one of the largest private banks in the country.

Today the bank serves retail customers, small and mid-sized businesses, large corporations, and wealthy individuals through retail banking, wholesale banking, treasury, and other segments, offering current accounts, term deposits, mutual funds, consumer, mortgage and commercial loans, leasing and factoring. It operates 129 branches across Chile.

Who owns it

In February 2022 the Bank of Nova Scotia increased its ownership in Scotiabank Chile through the acquisition of an additional 16.8% stake for approximately US$1.2 billion from the non-controlling interest shareholders, resulting in 99.8% ownership of Scotiabank Chile. That non-controlling interest had been held by Chile’s Said family, one of the country’s largest industrial groups, which had been a partner in the bank since the BBVA deal.

The structured data confirms insiders hold 99.79% of shares, leaving a free float of roughly 0.2% — meaning the local listing is largely a regulatory formality; the real owner is Toronto. Scotiabank Chile is a special stock corporation governed by the General Banking Act and is supervised by Chile’s Financial Markets Commission (CMF).

Who runs it

Diego Masola is Executive Vice President and Country Head — the role equivalent to CEO — of Scotiabank Chile. Masola, who previously served as CEO of Scotiabank Costa Rica overseeing Central America, took over the Chilean operation in mid-2021.

The bank made history in 2018 when Maria Victoria Doberti Dragnic became its first woman CFO, the first female CFO of any bank in Chile. She was subsequently promoted in 2022 to Senior Vice President and CFO for Scotiabank’s entire International Banking division, covering more than 15 countries.

The money, in plain words

For every peso of banking income the bank earns, it keeps roughly 38 cents as net profit — a net margin of 37.7%, exceptional even for a bank, reflecting tight cost control and the pricing power that comes with a top-three market position. For every peso shareholders own, the bank generates about 17 cents of annual profit — a return on equity of 17.3%, well above the cost of capital for a Chilean lender.

At 7.9 times earnings (a price-to-earnings ratio of 7.9×), the shares trade cheaply relative to comparable Latin American banks, which may reflect the thin free float and the fact that most investors must buy the parent on the Toronto or New York exchange to gain exposure. The dividend yield of 4.5% is meaningful; for 2025 profits the bank approved distributing dividends equal to 70% of earnings to shareholders.

Cash on the balance sheet stood at CLP 1.91 trillion (~US$2.07 billion) at the last reported year-end, against no disclosed short-term debt — a strong net cash position (our calculation).

What it is doing now

At the close of 2025 Scotiabank Chile recorded revenues of CLP 1.73 trillion (~US$1.88 billion at current rates), a 4% increase on the prior year. The bank continued to improve its efficiency ratio, trimming it from 40.5% to 39.5% — meaning it spends less than 40 cents to earn each peso of income, a lean figure for the industry.

At the 2026 shareholders’ meeting, country head Diego Masola set out five priorities: growing deposits and market share; cutting costs with digital tools; developing talent; reinforcing risk culture; and deepening relationships with primary customers. A strategic partnership with retailer Cencosud, in place since 2015, remains one of the bank’s key commercial anchors.

What to watch

• Deposit growth. Management has flagged deposit gathering as its primary 2026 target; progress here will directly fund loan growth and defend margins against Chilean rate-cycle pressure.
• Parent strategy. Scotiabank’s head of international banking has described 2025–26 as “a pivot to growth,” with Chile cited alongside Peru as markets showing early progress in deepening customer relationships. Shifts in Toronto’s capital allocation could accelerate or constrain the local franchise.
• Efficiency ratio. The bank trimmed its cost-to-income ratio by a full percentage point in 2025; sustaining that trajectory while investing in digital infrastructure will be a key test for Masola’s team.
• Free float. With barely 0.2% of shares in public hands, liquidity on the Santiago exchange is minimal; any move by the parent to delist, or conversely to sell a stake, would be a significant event.

This is news, not investment advice.