Bank of America has made major announcements regarding the realignment of its credit card portfolios and strategies. It is selling its $8.6 billion Canadian card portfolio to TD Bank in a deal expected to close in Q4.
The moves are part of a broader shift by Bank of America out of its international credit card businesses. On Aug. 3, the bank agreed to sell its card business in Spain to Apollo Capital Management Inc. Bank of America also recently sold its U.K. business lending portfolio, and is exiting the depository institution affinity credit card business with the recent sales of the Regions and Sovereign credit card portfolios.
The sale of the Canadian portfolio is of strategic importance to TD Bank. It also substantially increases the business base and establishes TD as a dual issuer in Canada:
“Acquiring this business makes TD a dual issuer of both Visa and MasterCard, giving customers greater choice,” said Tim Hockey, president and CEO of TD Canada Trust.
TD Bank said the deal will add 1.8 million active accounts to its existing 4 million. MBNA Canada is the country’s largest MasterCard issuer.
The Canadian portfolio has been operated under the name MBNA Bank, reflecting the 2006 purchase origins of Bank of American’s Canadian card business. Bank of American will also exit the U.K. and Ireland card portfolios, which have $19 billion in outstandings as well as around 4,000 employees.
Read the story here: http://www.forbes.com/feeds/ap/2011/08/15/business-financials-us-bank-of-america-asset-sales_8623585.html
