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Bank of America Corp. sold $700 million in credit card assets to U.S. Bancorp on Wednesday, in the struggling Charlotte company's latest effort to slim down.
December 21 -
The bank has little choice but to shrink itself through asset sales and layoffs, but the process is slow, demoralizing and no answer to future growth.
October 18 -
More banks are likely to follow in Regions Financial Corp.'s footsteps and bring their credit card portfolios back in-house as the worst of the recession's damage recedes and they look to increase revenue.
June 10 -
Bank of America Corp. said Monday that it is selling an $8.6 billion credit card portfolio in Canada and plans to unload $19 billion of card loans in Europe as it works to exit the international card business.
August 15
First BanCorp (FBP) in San Juan, Puerto Rico, is bringing its credit card portfolio back in-house.
The $13.1 billion-asset company said Monday that it has agreed to buy its credit card portfolio of roughly $400 million and about 150,000 active relationships from FIA Card Services, a subsidiary of Bank of America (BAC).
Analysts have predicted that more banks are
Bank of America has made several deals within the last year
The financial terms of the deal with First BanCorp were not disclosed. FIA Card Services would continue to service the accounts under an interim servicing agreement until 2013, First BanCorp said Monday. The acquisition is expected to close later this quarter.
Also on Monday, First BanCorp reported that it narrowed its first-quarter loss from $35.4 million in 2011 to $13.2 million this year as its loan loss provision fell for the fifth consecutive quarter, to $36.2 million.
The company's first-quarter net interest income totaled $101.9 million, down more than 4% from a year earlier. The bank recorded a $1.2 million loss on the sale of investments, compared with a $19.3 million gain a year earlier. This contributed to the company's noninterest income falling 79%, to $8.5 million, year over year.
