Scotiabank’s subsidiary in Peru has signed an agreement to acquire the retail and commercial banking operations of Citibank in Peru in a bid to expand its footprint in the region.
Scotiabank International Banking group head Dieter Jentsch said: "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.
"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 Peruvian operation of Citibank include eight branches serving over 130,000 retail and commercial banking customers.
With a focus on its Corporate and Institutional Banking Business, and International Private Bank Services, Citibank will continue to operate in the country.
Citi country officer in Peru Julio Figueroa said: "This agreement with Scotiabank is part of our recent strategic announcement to streamline the Consumer Banking footprint.
"We reaffirm our longstanding commitment to Peru and our focus on our institutional client businesses including Corporate and Investment Banking, Markets and Securities Services, Treasury and Trade Solutions and Private Banking."
Going forward,the companies will jointly work to ensure a smooth transition for customers and employees.
The transaction, which is subject to regulatory approval, is not material to Scotiabank.
On 11 December 2014, Scotiabank has agreed to replace Citibank as American Airlines’ co-branded credit card partner in Peru and provide continuity for existing Citi / AAdvantage cardholders.