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.
Swisscard has reassured stakeholders that the change in ownership will not immediately impact cardholders, merchants, or partners. The company will continue to issue cards under American Express, Mastercard, and Visa licenses in Switzerland.
UBS has been actively restructuring, having sold a stake in Credit Suisse Securities (China) in June and a former insurance-linked investment unit in July. The bank plans to inform Credit Suisse cardholders about new card issuance by mid-2025.
The decision by UBS to sell its stake in Swisscard comes amid a series of strategic divestments following its acquisition of Credit Suisse. In August, UBS liquidated a $2 billion real estate fund from Credit Suisse, reflecting a broader effort to streamline its portfolio. The fund, known as the Credit Suisse Real Estate Fund International, had seen a significant decline in value throughout 2023.
Meanwhile, despite American Express’ mixed results in the third quarter, there were positive signs in expense management and net interest income growth, suggesting potential for future performance improvements.
