UK banking group HSBC Holdings plc’s (LON:HSBA) indirect Canadian unit HSBC Retail Services Limited said it would sell its consumer private label credit card portfolio to TD Financing Services Inc, a subsidiary of Toronto-Dominion Bank (TSE:TD).
The vendor did not disclose the price it had agreed for the portfolio, but said its gross value was around CAD495m (USD485m/EUR374m) at 28 February.
The disposal is part of a strategy by HSBC Retail’s direct parent HSBC Financial Corporation Limited to wind down its consumer finance operations. It also fits with HSBC’s plans to focus its business in Canada on core commercial banking, global banking and markets and retail banking and wealth management, the vendor explained.
Pending regulatory clearance, the transaction is seen wrapping up in the third quarter of this year.
US financial services group Citigroup Inc (NYSE:C) is looking to divest the Credicard consumer finance unit of its Brazilian business as part of a plan to concentrate on its strongest operations, the Valor Economico newspaper said today without citing sources.
According to the report, Citigroup has opened a data room to possible suitors with preliminary information about the unit. Credicard, with some 7m clients, could draw interest from some of Brazil’s biggest players including Banco PanAmericano SA (SAO:BPNM4), part of Banco BTG Pactual SA, Valor said, adding that a price tag had not been determined yet.
A public relations executive for Citigroup refused to comment on market speculation, when contacted by Reuters.
Recently, Valor cited Citigroup’s chief country officer Helio Magalhaes as saying in an interview that the group did not plan to sell Credicard.