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Citi to acquire Costco loan portfolio for c.$1b from AmEx

Citigroup has agreed to acquire American Express' portfolio of credit card loans made to Costco customers during its time as credit card issuer for the retailer.

The portfolio will be acquired by Citigroup's card operations unit, who will be the issuer (alongside Visa) for Costco cards going forward.

The sale was prompted by Costco’s decision last year to switch its card partnership to Citigroup and Visa Inc., ending a 16-year relationship with AmEx, which said in January it expected a gain of approximately $1 billion from the sale. Citigroup is the world’s biggest credit-card lender.