Scotiabank To Acquire JPMorgan Chase Credit Card Portfolio In Canada

(RTTNews) - Canadian financial services provider Bank of Nova Scotia (BNS, BNS.TO) or Scotiabank said that it agreed to 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 about $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.

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.