The plans for the acquisition were announced in July last year, when both the companies reached an agreement to this effect.
The acquisition including 21 branches, 88 ABMs and 4 service centers in Panama and Costa Rica will increase Scotiabank’s customer base from approximately 137,000 to 387,000.
Scotiabank international banking head Dieter Jentsch said: "These acquisitions align with our strategy to deepen relationships and increase relevance with our customers. These transactions complement our existing operations in Panama and Costa Rica."
With 34 branches and 158 ABMs, Scotiabank has around $2,650m worth assets in Costa Rica since 1995.
Scotiabank entered Panama in 1974 where it has $2,700m assets, 16 branches and 22 ABMs.
The acquired operations will run under the name Scotiabank Transformándose. These entities will remain separate during the integration process in order to comply with local legislation.
Citi Central America and Caribbean cluster head Alvaro Jaramillo said: "This is a positive outcome for Citi, as well as for the employees and customers of Citi’s consumer bank in Costa Rica and Panama.
"Citi has a long history in the region and we will continue to focus on providing best-in-class services to corporations, financial institutions and public sector clients in Costa Rica and Panama through Citi’s unique global footprint."
Scotiabank and Citigroup will work together for the smooth transition of customers and employees during the integration process, which should take 24-36 months.
This transaction is expected to increase Scotiabank’s market share in credit cards to approximately 18% in Panama and 15% in Costa Rica.
Image: The acquisition will increase Scotiabank’s customer base from approximately 137,000 to 387,000. Photo: courtesy of Verne Equinox / Wikipedia.
