Canadian lender Scotiabank has agreed to acquire JPMorgan Chase’s MasterCard and private label credit card portfolio and the related credit card operations.
The credit card portfolio comprises about $1.7bn in receivables as well as two million well-performing active customer accounts.
The deal also includes the acquisition of JPMorgan Chase’s credit card operations in Canada, which include a bilingual call centre in Ottawa with fraud, collections, recovery and customer service expertise.
Scotiabank’s common equity tier one capital ratio will be impacted by less than 10 basis points, mainly from the acquired assets.
The deal, subject to regulatory approval, is not financially material to Scotiabank or JPMorgan Chase.
Scotiabank group head of Canadian banking James O’Sullivan said: "This transaction is in line with our strategy to grow Scotiabank’s payments business, including credit cards, while providing our shareholders with attractive risk adjusted returns.
"Upon closing of the transaction, Scotiabank will become the first bank in Canada to offer customers Visa, AMEX and now, MasterCard credit cards."