TORONTO, ON - December 19, 2014 /CNW/ - Scotiabank announced today that its subsidiary in Peru has reached an agreement to acquire the retail and commercial banking operations of Citibank in Peru, subject to regulatory approval. The transaction is not material to Scotiabank. Scotiabank's common equity tier one capital ratio will be impacted by less than 10 basis points.

"We're excited about this acquisition because it will allow us to deepen existing customer relationships, serve new customers and increase our market share in credit cards and personal loans in Peru," said Dieter Jentsch, Group Head of International Banking at Scotiabank. "This acquisition is in line with our strategy to increase our scale within the Peruvian banking sector, as well as the other Pacific Alliance economies of Mexico, Colombia and Chile."

The agreement also includes the transfer of Citibank employees from the retail and commercial banking businesses in Peru to Scotiabank Peru.

Citibank's Peruvian operation includes eight branches which serve more than 130,000 retail and commercial banking customers. Citibank has been operating in Peru without interruption since 1920 and will continue to operate in the country with a focus on its Corporate and Institutional Banking Business, and International Private Bank Services, capitalizing on its global presence and competitive leadership position in these segments in Peru.

"This agreement with Scotiabank is part of our recent strategic announcement to streamline the Consumer Banking footprint. We are positive that our clients and employees will benefit from Scotiabank's large consumer footprint and plans for growth in the country," said Julio Figueroa, Citi Country Officer in Peru. "We reaffirm our longstanding commitment to Peru and our focus on our institutional client businesses including Corporate and Investment Banking, Markets and Securities Services, Treasury and Trade Solutions and Private Banking. Peru is a strategic market for Citi, and we will continue to invest in growing the business."

On December 11, 2014, an agreement was reached with American Airlines whereby Scotiabank will replace Citibank as American Airlines' co-branded credit card partner in Peru and provide continuity for current Citi / AAdvantage® cardholders.

Until the transaction gets all the necessary regulatory approvals, all operations, branches, products and benefits programs will continue operating without any change. Over the coming months, Scotiabank and Citibank will work together to ensure a smooth transition for customers and employees.

About Scotiabank in Peru and Latin America

• Scotiabank entered Peru in 1997 and has since grown to an operation with $15.7 billion in assets, 306 branches, 859 ABMs and more than 5,600 agency banking access points across the country.
• Scotiabank in Peru serves more than 1.3 million retail, corporate, commercial, and institutional customers.
• Through its subsidiary, CrediScotia, Scotiabank serves Consumer Finance and Micro Finance customers.
• Through its pension fund management company Profuturo AFP, Scotiabank serves more than 1.8 million customers and has approximately USD $10 billion in Assets Under Management.
• Scotiabank operates in 11 countries across Latin America, with a primary focus on the Pacific Alliance countries of Peru, Mexico, Colombia and Chile.

About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $806 billion (as at October 31, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York (NYSE: BNS) stock exchanges. Scotiabank distributes its media releases using CNW. For more information please visit www.scotiabank.com.

About Citi 
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

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