By CNBC (World News) | Created at 2024-10-21 06:20:21 | Updated at 2024-10-21 08:29:11
2 hours ago
UBS logo is seen at the office building in Krakow, Poland on February 22, 2024.
Jakub Porzycki | Nurphoto | Getty Images
UBS is offloading part of the Credit Suisse business it acquired last year with a deal to sell the fallen bank's 50% stake in credit card provider Swisscard.
UBS will sell its 50% holding in the company to its joint venture partner American Express, Swisscard said in a statement.
Terms of the deal were not disclosed.
After the deal, Amex will become the sole owner of Swisscard, with Credit Suisse customers transferring to the existing UBS credit card platform.
Swisscard said it would continue to issue all other cards it issues under the American Express, Mastercard and Visa licenses and will continue to operate the American Express business in Switzerland.
There is no near-term impact on any of these cardholders, merchants or partners, the company said.
Following its emergency takeover last year, UBS is now divesting parts of the Credit Suisse business. In June it sold a stake in Credit Suisse Securities (China), and in July it agreed to sell a former insurance-linked investment arm of the bank to its management.
UBS on Monday said it was fully committed to its credit card business, but issuing credit cards in Switzerland through Swisscard did not "align with the existing operational setup and strategic priorities of UBS as legal successor to Credit Suisse."
The bank said there was no need for action by cardholders, with clients holding Credit Suisse branded credit cards to be informed about new card issuance in the first half of 2025.
