Scotiabank to Acquire JPMorgan Chase Credit Card Portfolio in Canada
The Credit Card Portfolio Includes Approximately 2 Million Active Customers and $1.7 Billion in Outstanding Receivables; Scotiabank to Become the First Bank in Canada to Offer Customers All Three Leading Credit Card Brands: Visa, AMEX, and MasterCard
Toronto - The Bank of Nova Scotia and JPMorgan Chase Bank, N.A. announced that the two companies have reached an agreement under which Scotiabank will acquire a MasterCard and private label credit card portfolio and the related credit card operations from JPMorgan Chase. The terms of the transaction are not financially material to Scotiabank or JPMorgan Chase. Scotiabank's common equity tier one capital ratio will be impacted by less than 10 basis points, primarily from the acquired assets. The acquisition will be accretive to Scotiabank's earnings in year one. This agreement is subject to regulatory approval.
The credit card portfolio includes approximately $1.7 Billion in receivables and 2 million well-performing active customer accounts. The agreement also includes the acquisition of JPMorgan Chase's credit card operations in Canada. These operations include a highly-skilled bilingual call centre in Ottawa with fraud, collections, recovery and customer service expertise.
"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," said James O'Sullivan, Group Head of Canadian Banking at Scotiabank. "Upon closing of the transaction, Scotiabank will become the first bank in Canada to offer customers Visa, AMEX and now, MasterCard credit cards."
"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," said Martin Parizeau, CEO, Canada Card Services at JPMorgan Chase.
The JPMorgan Chase credit card portfolio being acquired is a MasterCard and private label credit card portfolio, currently associated with Sears Canada Inc. As previously communicated by JPMorgan Chase, the agreement with Sears Canada comes to an end on November 15, 2015. Scotiabank is committed to ensuring a smooth transition for all customers.