More NewsCapital One Buys HSBC US Card Business

Capital One Buys HSBC US Card Business

HSBC has agreed to sell its card and retail services business in the US to Capital One Financial Corporation. The business to be sold is HSBC’s monoline US credit card and private label credit card business, comprising gross customer loan balances together with certain real estate and other assets and liabilities. Included in the sale are the business’s MasterCard, Visa, private label and other credit card operations.

The products of the business are offered throughout the US primarily via strategic affinity and co-branding relationships, merchant relationships, direct mail and via the internet.

Stuart Gulliver, HSBC Group chief executive officer (CEO), said: “This transaction continues the execution of the strategy we announced at our investor day on 11 May 2011 to focus our US business on the international needs of customers in commercial banking, global banking and markets, retail banking and wealth management and onshore global private banking. Although dilutive in the short term, this transaction will reduce group risk-weighted assets by up to US$40bn which, together with an estimated post-tax gain on sale of US$2.4bn, will allow capital to be redeployed over time.”

HSBC and Capital One expect no immediate changes to HSBC card programmes and operations.

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