Bank of Ireland has agreed to sell its UK credit card portfolio to digital finance company Jaja Finance for a face-value fee of £530m.
The company announced on Friday its decision to sell the portfolio of cards comprising the existing Bank of Ireland UK, the AA and Post Office-branded credit cards.
The bank said it has also reached a long-term agreement with London startup Jaja for the it to become the issuer for its UK consumer credit cards.
Jaja led a consortium of investors purchasing the cards, including US private equity funds Centerbridge Partners and KKR, it confirmed today.
The finance firm said it wanted to become a key player in the UK credit card market and that this move was part of a wider strategy to do that.
Customers credit cards will be transferred to Jaja in 2020 and they will receive written notification prior to its completion.
At the end of 2018, Bank of Ireland’s UK credit card portfolio was worth around £545m and contributed £35m to the total income of the business, with operating expenses at £36m.
Bank of Ireland UK chief executive Des Crowley said Jaja was “an innovative company which shares our commitment to delivering outstanding customer service”.
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“We are proud to partner with them, and bring their next generation credit card to customers across the UK,” he said.
“Today’s announcement demonstrates the bank’s continued progress in delivering against its strategic targets for growth and transformation to 2021, as set out at its investor day in June 2018.”