The banks have reached an agreement to this effect.
JPMorgan Chase Canada card services CEO Martin Parizeau said: "This agreement enables JPMorgan Chase to streamline its operations in Canada while providing our customers with the opportunity to migrate to and be serviced by Scotiabank’s global consumer footprint."
The acquisition is in line with Scotiabank’s strategy to grow its payments business, including credit cards.
The credit card portfolio being acquired includes close to $1.7bn in receivables and 2 million well-performing active customer accounts.
Under the agreed terms, Scotiabank will also acquire JPMorgan Chase’s credit card operations in Canada which includes a highly-skilled bilingual call center in Ottawa with fraud, collections, recovery and customer service expertise.
Subject to regulatory approval, the acquisition will be accretive to Scotiabank’s earnings in year one.
Scotiabank Canadian Banking group head James O’Sullivan said: "Upon closing of the transaction, Scotiabank will become the first bank in Canada to offer customers Visa, AMEX and now, MasterCard credit cards."
The terms of the transaction are not financially material to neither of the banks. However, the acquisition will have an impact on Scotiabank’s common equity tier one capital ratio by less than 10 basis points, primarily from the acquired assets.
Last year, Scotiabank announced plans to divest its Puerto Rican banking unit, Scotiabank de Puerto Rico.
