Vancouver-based HSBC Retail Services Ltd. has entered into an agreement to sell its consumer private label credit card portfolio to TD Financing Services Inc., a wholly owned subsidiary of The Toronto-Dominion Bank (TSX:TD).
At the end of February, the gross value of the portfolio was approximately $495 million.
The agreement accelerates the wind down of the Canadian consumer finance business originally announced by HSBC Retail’s parent company HSBC Financial Corp. Ltd. on March 21, 2012.
This is a continuation of HSBC’s strategy in Canada to focus on the core businesses of commercial banking, global banking and markets, and retail banking and wealth management.
The sale is expected to be completed in the third quarter of 2013.
HSBC Financial Corp. Ltd. is a subsidiary of HSBC Bank Canada.