CIBC said Monday it has signed a deal to buy a $2.1-billion credit card portfolio from Citigroup’s Canadian MasterCard business.
The portfolio includes accounts associated with co-branded Petro Canada (TSX:SU) credit cards that offer the Petro Points rewards program.
“This acquisition is directly aligned with our strategy to grow our core Canadian operations,” CIBC president and chief executive Gerry McCaughey said in a statement.
“With our scale, platform and operating synergies, combined with our expertise in credit cards, we are confident this transaction furthers our strategic growth objectives.”
The deal is expected to be accretive to CIBC’s earnings during the first year following its closing, the bank said.
Under the agreement, prior to closing, non-performing accounts will be removed from the acquired portfolio and from Broadway Credit Card Trust, which has securitized certain Citibank MasterCard receivables.
CIBC (TSX:CM) said it was its third transaction since early March including the acquisition of the remaining 50 per cent of CIT Business Credit Canada and the purchase of a minority stake in Bermuda-based the Bank of N.T. Butterfield & Son Ltd.
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