OTTAWA – Canada’s Scotiabank has announced plans to shut or shrink 120 branches, largely in Mexico and the Caribbean, in a bid to save $120 million annually.

The bank said it would close 35 of its 200 branches in the Caribbean and would sever 1, 500 full-time employees, including 500 from its international operations.

“In some of these (Caribbean) countries, we are just over-branched and we have to size it to the economic realities of these economies,” said Scotiabank Chief Executive Officer Brian Porter.

Scotiabank said closure of the Caribbean branches is due “to the prolonged economic recovery and continued uncertain outlook” and that it had started restructuring initiatives “in order to improve the speed and quality of service it provides its customers, to reduce costs in a sustainable manner, and to achieve greater operational efficiencies.

Scotiabank made a record $6.7-billion net income in 2013.

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