Banco Popular Espanol, a wholly owned subsidiary of Spanish lender Banco Santander, has inked an agreement to sell Totalbank to Chile-based Banco de Credito e Inversiones (BCI) for $528m.

The disposal of US operation is part of Santander’s strategy to sell non-core assets it inherited when it purchased Banco Popular in June 2017.

After acquisition, Santander has invested €7bn to strengthen Popular’s balance sheet following the successful rights issue in July.

TotalBank, which operates as a retail and commercial bank, has over $3.1bn in assets across 18 branch offices. The bank employs approximately 300 people.

Commenting on the agreement, Banco Santander executive chairman Ana Botin said: “Since acquiring Popular we have made excellent progress in delivering against our commitments – raising the required capital, strengthening the bank’s balance sheet, while regaining customer loyalty.

“While TotalBank is an excellent franchise, it is not a natural fit with our existing US business. We are therefore pleased to announce the sale to BCI who are well positioned to grow the business going forward.”

The deal is subject to regulatory approvals and other usual conditions.