CIBC said Wednesday it is selling its Delaware-based credit card issuer to Barclays Bank PLC for US$293 million. The move marks another step in the bank’s efforts to cut back its U.S. assets.
CIBC said the sale of Juniper Financial Corp., worth $383 million in Canadian funds at Tuesday’s exchange rates, will result in a pre-tax gain of about $98 million ($46 million after tax).
CIBC acquired 51% of Juniper Financial in 2001, a year after Juniper was founded as an online bank and card issuer, and later increased its ownership to 98%, with the remaining 2% held by Juniper’s senior management. Juniper, a 400-employee operation headquartered in Wilmington, Del., has 700,000 accounts with US$1.4 billion in receivables.
The sale of Juniper follows the sale of CIBC’s Oppenheimer wealth management business in the U.S. and the closure of its Amicus U.S. electronic banking operation.
CIBC continues U.S. retrenchment
Sells credit card issuer Juniper Financial for US$293 million
- By: IE Staff
- August 18, 2004 August 18, 2004
- 10:14