Scotiabank buys JPMorgan's Canadian credit card operations

Scotiabank has agreed to buy U.S. bank JPMorgan Chase’s credit card portfolio in Canada, which includes the Sears Canada credit cards.

Bank is building its credit card operations by adding Sears Canada, MasterCard

Scotiabank is taking over the Sears Canada credit card as well as other Canadian credit operations from JPMorgan Chase.

Scotiabank has agreed to buy U.S. bank JPMorgan Chase's credit card portfolio in Canada, which includes the Sears Canada credit cards.

The bank announced the deal Thursday, but did not release financial terms.

Scotiabank is acquiring JPMorgan's MasterCard and Sears card portfolio, along with the call centre and security operations associated with the cards. It is Scotiabank's first foray into MasterCard in Canada.

It gains about two million credit card customers and receivables of about $1.7 billion a year.

"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.

Troubled retailer Sears Canada has been seeking a new partner to handle its credit card for the past year after JPMorgan announced it would terminate their agreement Nov. 15.

Scotiabank has rested part of its growth strategy on an expanded credit card business, partnering with Cineplex and buying 20 per cent of Canadian Tire's financial services business.


To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.