July 29, 2019 / 10:17 PM / 20 days ago

Bank of America ends joint venture with Fiserv's First Data

FILE PHOTO: A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo Allegri

(Reuters) - Bank of America Corp (BAC.N) said on Monday it would end its electronic payment services joint venture with First Data Corp next June, hours after Fiserv Inc (FISV.O) completed its acquisition of the payment processor.

The bank said it expects to incur a non-cash, pretax impairment charge of about $1.7 billion to $2.1 billion in the third quarter of 2019 due to the termination of the partnership started in 2009 .

The charge is expected to reduce the second-largest U.S. lender’s common equity tier 1 ratio, a key measure of capital against risk-weighted assets, by 9 to 11 basis points.

U.S. financial technology provider Fiserv announced the acquisition of First Data earlier this year, in a $22 billion all-stock deal.

Bank of America said here on Monday it and First Data had agreed to provide uninterrupted services to clients of Banc of America Merchant Services through at least June 2023.

Fiserv’s shares were down 1.5% at $103.10 in extended trading, while that of Bank of America’s were broadly unchanged.

Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli

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