ABJ – Aug 15 – Bank of America Corporation announced today that it has agreed to sell its credit card business in Canada to TD Bank Group and that it will exit its credit card businesses in the U.K. and Ireland.

"Our strategy is clear: We have been transforming the company to deliver the franchise to our core customer groups, and building a fortress balance sheet behind that," CEO Brian Moynihan said in a statement. "While the credit card remains a fundamental core product for our U.S. customers, an international consumer card business under another brand is not consistent with that strategy."

The move also continues the transformation of Bank of America's credit card business, following the sale of the U.K. Business Lending portfolio, the agreement to sell the Spanish card business, and the company's continued exit from the depository institution affinity credit card business with the recent sales of the Regions and Sovereign credit card portfolios.

Bank of America and TD Bank Group announced a definitive agreement by which TD Bank Group has agreed to purchase Bank of America's $8.6 billion Canadian credit card portfolio as well as certain other assets and liabilities.

The transaction is expected to close in the fourth quarter, subject to regulatory approval. The transaction is expected to have a positive impact on the company's Tier 1 common and tangible common equity and the respective ratios.

The transaction is also expected to result in a modest increase in tangible book value per share, which has grown 12 per cent from January 1, 2010 to June 30, 2011.

Add to: del.icio.us | Digg | NewsVine | Mixx | FaceBook | Twitter