Jake Lawrence, Scotiabank’s global banking & markets chief, will leave.

On Wednesday, Canadian lender Bank of Nova Scotia stated that its chief of global banking & markets, Jake Lawrence, is leaving to take on a role at financial services company Power Corporation of Canada.

The bank stated that Michael Kruse and Paul Scurfield will contribute to the team interim and report to CEO Scott Thomson.

Lawrence’s Departure Holds a Shake-Up:

Lawrence’s departure includes a shake-up that the Canadian lender started under Thomson last year. The bank has also been contending with industry-wide fears of a spike in problematic loans as rising interest rates increase the likelihood of defaults by borrowers.

Thomson has taken over as head of the bank’s Canadian banking, wealth management, and international banking.

Lawrence, a two-decade bank veteran and potential CEO candidate, was given a $1.5 million one-time restricted stock retention bonus when Thomson’s appointment was announced in 2022.

Jake Lawrence Will Work As a Strategic Adviser:

He will work as a strategic adviser for Scotiabank until he leaves in March to become the chief financial officer of Power Corporation of Canada, the Desmarais Family’s holding firm.

Thomson and his team presented the bank’s strategy in December, boosting its focus on North America while abandoning Central America and Colombia or growing those businesses without using more cash.

Division Accounts 18% of Scotiabank’s Earnings:

The global banking and markets team had developed a strategy centered on the United States and Mexico.

The division accounts for around 18% of Scotiabank’s earnings and provides lending and transaction services and investment banking advice to corporate clients in over 20 countries.