CIBC: Crowned Canada’s Largest Dual Credit Card Issuer
Citi Bank has had problems in selling off their weaker and less popular portfolios in the recent years. However it was met with a very little amount of success. A lot of experts have said that this negative growth of the bank is because of the bank’s distinguished selectivity on how they divide the features of each portfolio. The bank has been meticulously known to not allow weak or less desirable features packaged together.
For the bank to sell off, they had to mix the stronger portfolios to the weaker portfolios. Apparently, the bank saw this strategy to work and so it did. The bank announced that they are selling their Canadian portfolios to CIBC on Monday. With this sale, the CIBC card portfolio would increase its credit card assets with about 15 percent.
The Canadian Imperial Bank of Commerce or simply CIBC has become Canada’s largest dual credit card issuer. They have now expanded into offering both MasterCard and Visa branded credit cards.
CIBC has recently purchased Citi Bank’s Citi Bank Canadian portfolio with the selling price not yet disclosed. Reports, however, say that the portfolio was purchased for C$2 billion. In addition to the early C$14 billion portfolio, CIBC has now moved to the top of the Canadian credit card issuers. Citi Bank wanted to sell off the portfolio so that the bank would emphasize their greater focus on expanding the bank’s global banking, credit card transaction services and private banking services as well. This portfolio includes a lot of various Canadian credit card brands including Petro-Canada.
CIBC has been said to be very much eager in expanding and improving its credit card portfolio for quite some time now. In fact, just in March the bank endowed $150 million for a state in the Bank of N.T. Butterfield and Son, Ltd which has been foreseen to increase its popularity in the Caribbean. During the month of April, Canadian Imperial Bank of Commerce was known to have bought the CIT Bank Credit Canada from the CIT Group Inc. As the CIBC bought the CIT Bank Credit Canada this would enable the company to extend its lending capabilities. This allows both banks, the CIT Group Inc and the CIBC, to increase their concentration on their business and development strategies.
CIBC apparently is winning in the world of banking, finance and loans since their recent developments have done nothing to harm the company as they meet their goals.
