UK banking group HSBC Holdings plc’s (LON:HSBA) indirect Canadian unit HSBC Retail Services Limited said it would sell its consumer private label credit card portfolio to TD Financing Services Inc, a subsidiary of Toronto-Dominion Bank (TSE:TD).
The vendor did not disclose the price it had agreed for the portfolio, but said its gross value was around CAD495m (USD485m/EUR374m) at 28 February.
The disposal is part of a strategy by HSBC Retail’s direct parent HSBC Financial Corporation Limited to wind down its consumer finance operations. It also fits with HSBC’s plans to focus its business in Canada on core commercial banking, global banking and markets and retail banking and wealth management, the vendor explained.
Pending regulatory clearance, the transaction is seen wrapping up in the third quarter of this year.