28 March 2017
visit nextgenbanking.co.uk

Citi to sell Canadian MasterCard business to CIBC

15 June 2010  |  8651 views  |  0 citi bank

Citi has agreed to sell its C$2.1 billion Canadian MasterCard credit card portfolio to CIBC as part of an ongoing effort to shed non-core assets. Financial terms were not disclosed.

The deal, expected to close by 31 October subject to regulatory approvals, will make CIBC the largest dual credit card issuer in Canada. As of April it already had more than $14 billion in outstanding credit card balances.

Citi says the deal is not expected to have a material impact on net income or capital ratios. CIBC says it should be accretive to earnings during the first year.

Citi has already sold its Diners Club North America card business to Bank of Montreal (BMO) and its Italian and Portuguese credit card businesses to Barclays in the last year as it seeks to streamline operations following the economic meltdown.

Vikram Pandit, CEO, Citi, says: "This transaction demonstrates the continued progress we are making in our efforts to divest non-core assets. Our team continues to pursue opportunities to reduce assets in Citi Holdings in a way that will create value for our stakeholders."

Gerry McCaughey, president and CEO, CIBC, adds: "This acquisition is directly aligned with our strategy to grow our core Canadian operations. It will further strengthen our highly successful credit card business by broadening our client base and diversifying our credit card portfolio."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Gartner takes a swipe at Citi mobile trial data

Gartner takes a swipe at Citi mobile trial data

18 March 2010  |  11782 views  |  1 comments
Citi accused of blocking start-up account over 'objectionable' blog content

Citi accused of blocking start-up account over 'objectionable' blog content

25 February 2010  |  6569 views  |  0 comments
Barclays buys Citi's Italian credit card business

Barclays buys Citi's Italian credit card business

11 February 2010  |  8288 views  |  0 comments
Citi to sell Diners Club North American business to BMO

Citi to sell Diners Club North American business to BMO

24 November 2009  |  9077 views  |  0 comments
Barclays to buy Citi's Portuguese credit card business

Barclays to buy Citi's Portuguese credit card business

30 September 2009  |  7262 views  |  0 comments
CIBC chooses NCR for ATM network upgrade

CIBC chooses NCR for ATM network upgrade

12 November 2008  |  7553 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
11828 views comments | 47 tweets | 30 linkedin
MAS to roll out national KYC utility for SingaporeMAS to roll out national KYC utility for S...
11632 views comments | 33 tweets | 45 linkedin
hands typing furiouslyTwo key technologies driving Machine Learn...
8218 views 0 | 16 tweets | 4 linkedin
UK to roll out image-based cheque clearing systemUK to roll out image-based cheque clearing...
6812 views comments | 20 tweets | 43 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job