Canadian lender Scotiabank has agreed to acquire Citigroup’s retail and commercial banking businesses in Panama and Costa Rica.
Citibank’s operations in Costa Rica and Panama include 27 branches that serve more than 250,000 retail and commercial banking customers.
The takeover includes assumption of Citigroup employees from the retail and commercial banking operations in Panama and Costa Rica by Scotiabank Panama and Costa Rica, respectively.
The terms of the agreement with Citigroup were not disclosed. However, Scotiabank said that the acquisition will nearly triple its customer base in these two countries from approximately 137,000 to 387,000.
Also, the deal 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 second in both countries in this segment.
Scotiabank has been operating in Panama since 1974 and in Costa Rica since 1995. The bank has already completed the acquisition of Citigroup’s consumer and commercial banking operations in Peru.