Bank of America Corp, the biggest US bank by assets, said it will exit the international credit-card business by selling its approximately $8.6-billion card business in Canada to TD Bank Group and leaving the UK and Irish card markets.
“We have been transforming the company to deliver the franchise to our core customer groups, and building a fortress balance sheet behind that,” Chief Executive Officer Brian T Moynihan said on Monday in a 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.”
Moynihan is focusing on retail-banking customers, commercial borrowers and investment banking, and getting rid of unrelated assets to raise capital. The Charlotte, North Carolina-based company, which took a $45 billion government bailout during the financial crisis, has struck deals to sell an insurance unit and mortgage-servicing rights. Bank of America sold its $200 million portfolio of small business card loans to Barclays Plc in April.
The TD Bank transaction is expected to close in the fourth quarter and boosttTier 1 common and tangible common equity ratios, the company said.
