Santander sells Puerto Rico business for $1.1 billion

Banco Santander SA has agreed to sell its retail and commercial operations in Puerto Rico to FirstBank Puerto Rico for about $1.1 billion.

The transaction should add 5 or 6 basis points to Santander's core Tier 1 ratio--a measure of a bank's capital strength--and have no material impact on its net profit, it said late Monday.

The deal includes 27 bank branches and assets of $6.2 billion, the Spanish bank said.

Santander will keep operating on the island including through Santander Consumer USA.

The deal is expected to close by mid-2020.