RBC Royal Bank announced that Friday it has entered into an agreement to sell most of its affinity credit card portfolio to MBNA Canada Bank.
Terms of the deal, which is expected to close June 30, were not disclosed.
This portfolio consists of less than 1% of RBC’s credit card account receivables. Under the agreement, MBNA Canada will acquire the majority of RBC’s credit card portfolios from affinity partners, which consist of college and university alumni associations, cause-related groups, sports groups and special interest groups.
RBC will retain certain other affinity partnerships and the associated receivables.
In a statement RBC said the transaction will allow the bank to focus on its core credit card business.
The deal expands MBNA Canada’s leadership position in affinity marketing to more than 500 membership organizations and financial institutions.