Bank of America sells Canadian credit-card business

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Bank of America on Monday said it will sell its $8.6 billion credit card portfolio in Canada to TD Bank Group and would exit its credit card businesses in Britain and Ireland.

Bank of America, the biggest US bank by assets, said that the Canadian bank will also purchase "certain other assets and liabilities."

The transaction is expected to close in the fourth quarter, subject to regulatory approval, BofA said in a statement.

The Charlotte, North Carolina-based bank also said it would exit its larger card businesses in Britain and Ireland, that combined have $12 billion in loans and more than 4,000 employees.

"Our strategy is clear: We have been transforming the company to deliver the franchise to our core customer groups, and building a fortress balance sheet behind that," BofA chief executive Brian Moynihan said in the statement.

"While the credit card remains a fundamental core product for our US customers, an international consumer card business under another brand is not consistent with that strategy."

The bank signed a deal on August 3 to sell its Spain credit card business to private-equity firm Apollo Capital Management.

© 2011 AFP

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