Scotiabank To Buy Citibank's Retail And Commercial Banking Operations In Peru

(RTTNews) - Scotiabank (BNS, BNS.TO) on Friday said its subsidiary has agreed to buy the retail and commercial banking operations of Citibank (C) in Peru, subject to regulatory approval.

Scotiabank said the deal is not material to it, and its common equity tier one capital ratio will be impacted by less than 10 basis points.

"We're excited about this acquisition because it will allow us to deepen existing customer relationships, serve new customers and increase our market share in credit cards and personal loans in Peru," said Dieter Jentsch, Group Head of International Banking at Scotiabank. "This acquisition is in line with our strategy to increase our scale within the Peruvian banking sector, as well as the other Pacific Alliance economies of Mexico, Colombia and Chile."

The deal also includes the transfer of Citibank employees from the retail and commercial banking businesses in Peru to Scotiabank Peru.

Citibank's Peruvian operation includes eight branches which serve more than 130,000 retail and commercial banking customers. Citibank has been operating in Peru since 1920 and will continue to operate in the country with a focus on its Corporate and Institutional Banking Business, and International Private Bank Services.

On December 11, an agreement was reached with American Airlines whereby Scotiabank will replace Citibank as the airline's co-branded credit card partner in Peru and provide continuity for current Citi / AAdvantage cardholders.