Citi to Purchase Best Buy Credit Card Portfolio
Citigroup is buying Capital One’s portfolio of Best Buy branded credit cards, allowing Capital One to end its Best Buy agreement early. The cards have loan balances of about $7 billion. The financial details were not released. The sale is expected to occur in the third quarter of 2013.
Capital One purchased the Best Buy portfolio from HSBC two years ago.
Citigroup already issues and manages retail cards for Macy’s, Sears and Home Depot. Citi has almost 90 million store-branded accounts as it tries to grow in an area it once tried to sell.
Citi Retail Services CEO Bill Johnson said in a statement that the bank wanted “to grow and enhance Best Buy’s relationships with their loyal and valued customers.”