Feb 19 Capital One Financial Corp said
it agreed to sell to Citigroup Inc its $7 billion
portfolio of private label and co-branded credit card accounts
linked to electronics retailer Best Buy Co Inc.
Capital One, which is among the largest credit card issuers
in the United States, said there would be no significant gain or
loss on the transaction. It did not disclose the selling price.
Private label cards are commonly called store cards and can
be used only at a single retailer. Co-branded cards can
typically be used elsewhere.
Separately, Citigroup said it would issue and manage Best
Buy credit cards in the United States in a deal that would not
affect its earnings this year materially.
The transactions are expected to close in the third quarter,
Citigroup's cards division for stores has come a full circle
since the financial crisis. The bank had initially planned to
sell the unit but decided to keep it after loss rates on the
Citi's retailer cards business now services 90 million
accounts for chains such as The Home Depot Inc, Macy's
Inc and Sears Holdings Corp.
Capital One's shares were down 1 percent at $53.61 on the
New York Stock Exchange on Tuesday. Citi's stock was up 1
percent ay $44.47.