Grupo Financiero Scotiabank Inverlat’s wholesale banking operation in Mexico is being aligned with Scotia Capital to create a wholesale banking platform spanning North America.

The new unit in Mexico will be headed by Felipe de Yturbe, managing director, head of Mexico wholesale banking.

“This unique realignment of Scotiabank Group’s wholesale banking activities across the NAFTA region strengthens our position as a leader in North America,” says David Wilson, vice chairman, Scotiabank and chairman and CEO, Scotia Capital. “No other financial institution can provide the depth of service we now have under one roof.”

The new NAFTA platform will service corporate, government and institutional clients under the Scotia Capital brand. The firm says the realigned business model will be more centralized, with common processes, products and services.

“Over time, clients will see an expanded product offering and new ways in which products and services are delivered. In the short term, clients in Mexico will have access to enhanced derivative products and online foreign exchange dealings,” says Wilson. “These products and services will be targeted at both corporate and government clients, as well as institutional investors,” he adds.

While the realignment was initiated in April and the official re-branding finalized this month, global synergies are already paying off. “We served as financial advisors for one of the largest merger-and-acquisition deals in Mexico,” says de Yturbe. That transaction in early 2005 featured Mexico’s fifth-largest retailer, Grupo Comercial Chedraui, acquiring 30 retail stores from France’s Carrefour Group, the world’s second largest retailer.

“Scotiabank is focusing on Mexico as a prime market for potential growth, given the country’s youthful demographics and increasing integration into the North American and global economies,” de Yturbe adds.

It is estimated that this new initiative could increase annual revenues by $75 to $125 million after full ramp-up.

Grupo Financiero Scotiabank Inverlat provides retail and commercial banking services in Mexico. Scotia Capital represents the corporate and investment banking businesses of the Scotiabank Group.