JPMorgan Chase & Co. is mulling the sale of its credit card portfolio built in partnership with AARP, which includes around $1 billion in credit card receivables, Bloomberg News reported, citing people familiar with the matter.
The credit card allows AARP members to earn 3% cash back on dining and gas purchases and 1% cash back on all other purchases, according to AARP's website.
A source told Bloomberg that Alliance Data Systems Corp. is among the firms interested in acquiring the portfolio. The reported interest comes after Alliance Data sold Epsilon Data Management LLC to Publicis Groupe SA for $4.4 billion in July, with Alliance Data planning to use proceeds to cut down on debt and repurchase shares.
JPMorgan reported second-quarter total credit card loans of $157.58 billion, an 8% increase from the year-ago figure of $145.26 billion. The banking giant recorded second-quarter EPS of $2.82, which beat the S&P Global Market Intelligence consensus GAAP estimate of $2.49. CEO Jamie Dimon said the bank's strong second-quarter results were due to U.S. consumers, who remain confident as wages rise and unemployment hovers near historic lows.
JPMorgan and Alliance Data declined to comment to S&P Global Market Intelligence.
