Capital One to buy back $1 bln in shares

July 2 Tue Jul 2, 2013 8:05am EDT

July 2 (Reuters) - Credit card issuer Capital One Financial Corp said it would buy back shares worth up to $1 billion after it completed the sale of its Best Buy Co Inc portfolio.

Capital One is selling its $7 billion portfolio of private label and co-branded credit card accounts linked to electronics retailer Best Buy to Citigroup, a deal expected to close in the third quarter.

The credit card issuer passed a Federal Reserve stress test in March, under which the regulator allowed it to raise its dividend and repurchase shares.

The company raised its quarterly dividend to 30 cents per share from 5 cents per share in May after receiving Fed's approval.

Shares of Capital One, which has a market capitalization of about $37.2 billion, closed at $63.59 on Monday on the New York Stock Exchange.