HSBC agreed to sell its U.S. credit-card unit as it tries to focus on emerging markets. Capital One, which recently agreed to buy ING‘s U.S. online bank, will pay a $2.6 billion premium for the acquisition above the value of the unit’s existing consumer-loan balances.
The sale continues the pullback from consumer banking by HSBC, which on July 31 agreed to sell almost half its U.S. retail branches, largely in New York. HSBC acquired the credit-card in 2003 when it bought sub-prime lender Household International.
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. As of 2011 it is the world’s second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine. It has many branches in Africa and other emerging and developing markets.