Saturday 24 August 2019

BoI sells UK credit cards arm

The bank, which will write to the impacted customers, will continue to service the credit card portfolio until the transfer to Jaja takes place next year (stock photo)
The bank, which will write to the impacted customers, will continue to service the credit card portfolio until the transfer to Jaja takes place next year (stock photo)
Ellie Donnelly

Ellie Donnelly

Bank of Ireland is selling its UK credit cards business for £530m (€591m) to British fintech firm Jaja Finance.

This comprises the Post Office, the AA and the bank's own-branded UK consumer credit cards.

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In Northern Ireland, the sale will impact general consumers. However, the portfolio excludes the bank's commercial credit cards.

Jaja Finance, which is backed by Centerbridge Partners Europe, will also become the issuer for the AA and Bank of Ireland's consumer credit cards.

Bank of Ireland UK CEO Des Crowley said: "[The] announcement demonstrates the bank's continued progress in delivering against its strategic targets for growth and transformation to 2021."

The bank, which will write to the impacted customers, will continue to service the credit card portfolio until the transfer to Jaja takes place next year.

Customers can continue to use their credit cards as normal.

As at December 31 2018, the UK consumer credit cards portfolio was around £545m (€608m) and, in 2018, this business contributed £35m (€39m) of total income and had operating expenses of £36m (€40m).

Proceeds from the sale will be used for general purposes.

Earlier this week, it was announced the bank's chief financial officer Andrew Keating is to leave for a job with an international organisation outside financial services.

Shares in Bank of Ireland were down just over 1pc in afternoon trading yesterday.

Irish Independent

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