Scotiabank’s common equity tier one capital ratio will be impacted by approximately 15 basis points.
This acquisition is in line with Scotiabank’s strategy to increase scale within its footprint and complements its operations in Panama and Costa Rica. This transaction will provide a significant lift to the Bank’s market share in credit cards to approximately 18% in Panama and 15% in Costa Rica, ranking Scotiabank number two in both countries in this segment.
This acquisition will nearly triple Scotiabank’s customer base in these two countries from approximately 137,000 to 387,000, providing significant opportunities to leverage leading regional loyalty programs and key strategic alliances.
Citibank’s operations in Costa Rica and Panama include 27 branches which serve more than 250,000 retail and commercial banking customers. Citibank has been operating in Costa Rica since 1968 and in Panama since 1904 and will continue to operate in these countries with a focus on its Corporate and Institutional Banking Business, and International Wealth Management Services, capitalizing on its global presence and competitive leadership position in these segments.
The agreement also includes the assumption of Citigroup employees from the retail and commercial banking businesses in Panama and Costa Rica by Scotiabank Panama and Costa Rica, respectively. Until the transaction receives the necessary regulatory approvals, all operations, branches, products and benefits programs will continue to operate as usual. Scotiabank and Citibank will work together to ensure a smooth transition for customers and employees.
