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Banco BPI to sell cards biz to CaixaBank unit

Banco BPI SA agreed to sell its debit and credit card business to CaixaBank SA's 100%-owned unit CaixaBank Payments Establecimiento Financiero de Credito de Entidades de Pago SA, or CB Payments, for €53 million, following approval by its board of directors.

The bank also agreed to sell its merchant acquiring business to Comercia Global Payments Entidad de Pago SL — a joint venture of CaixaBank and Global Payments Inc. — for a consideration of €60 million.

Under the deal, Banco BPI will render to CB Payments and Comercia a series of services related to the activities involved in the transactions. In addition, Banco BPI will grant CB Payments funding for loans that have been advanced to customers under the scope of the debit and credit card business. It will also give Comercia funding for the amounts due to merchants under the scope of the merchant acquiring business.

The sales will not entail the relocation of relevant activities or employees.

Banco BPI said the sales are expected to result in a pretax gain of €99 million, based on the values observed at Sept. 30, and in an increase in its fully loaded common equity Tier 1 ratio of roughly 46 basis points.

CaixaBank completed its takeover of Banco BPI in February.