Citigroup has agreed to sell its retail and commercial banking businesses in Panama and Costa Rica to Canada's Scotiabank.

Citi had already announced last year that it would sell the businesses in Panama and Costa Rica, and in 10 other countries, as part of a larger plan to shrink the company and focus on other markets.

In the Scotiabank agreement, Citi will sell business units that handle credit cards, personal loans, deposit accounts and commercial banking. Financial terms were not disclosed.

Citi will continue to run institutional and wealth management operations in both countries after the sale.

Scotiabank, the holding company for the Bank of Nova Scotia, expects its market share for credit cards to increase 18% and 15% in Panama and Costa Rica, respectively, with the Citi acquisition. The Toronto company also expects the deal to triple its customer base in both countries.

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