Scotiabank Acquires Citibank's Retail And Commercial Banking Operations In Peru

(RTTNews) - Bank of Nova Scotia (BNS, BNS.TO) said Friday that its subsidiary in Peru has acquired the retail and commercial banking operations of Citibank in Peru.

Citibank's Peruvian operation includes eight branches which serve more than 130,000 retail and commercial banking customers.

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

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

Separately, Scotiabank said Friday that it has completed the acquisition of 51% of Cencosud's financial services business in a 15-year strategic alliance.

The partnership includes the management of Cencosud's credit card portfolio and the provision of additional products and services to customers of both organizations.

The deal, valued at approximately USD $280 million, also includes a commitment by the Bank to fund 100% of the loan portfolio.

Cencosud's financial services business includes about 2.5 million credit cards and close to US$1 billion in outstanding balances in Chile.