Sydney, 8 February 2008: Suncorp today announced the transfer of its credit card portfolio to Citibank as part of a long term partnership designed to provide an enhanced range of services to its customers.
The partnership follows an extensive review by Suncorp's Retail Bank of its credit card portfolio valued at approximately $230m. Citibank was chosen from a list of potential partners that included domestic and international credit card companies.
Suncorp Group Executive Retail Banking David Foster said the agreement allowed Suncorp to grow its portfolio in partnership with a leading Australian and global financial services group.
"It allows us to concentrate on the products and services we believed are best suited to our unique skills and capabilities. Through the transaction, we will gain access to Citibank's experience, technology, know-how and economies of scale in credit card manufacturing."
He said under the transfer arrangement, all cards would be branded Suncorp with Citibank responsible for operational and credit risk, technology platforms, issuance and back office processing, and portfolio management.
For Suncorp, this means we will retain our existing customers and earn revenue from credit card commissions," he said.
"For our customers, we will offer an improved, world class range of Suncorp credit cards with access to a global rewards program."
As the world's largest issuer of credit cards, the partnership supports Citibank's vision for expansion and follows existing white label agreements in Australia.
The latest arrangement will bolster Citibank's portfolio significantly, adding around 100,000 cards to its existing customer portfolio.
Citibank Director of Cards Roy Gori said the agreement signalled Citibank's continued commitment and determination to stake out an even bigger slice of Australia's highly competitive credit card market.
"Citibank's growth in the credit card spaces is the result of market-leading credit card technology platforms, leading edge products and marketing capabilities," Mr Gori said. "Our global expertise in issuance means we can offer our partners unique skills and capabilities that others can't."
"We are taking steps through organic and inorganic growth to be a leader in the Australian credit card market and this latest partnership with Suncorp is another critical milestone in achieving our vision."
Mr Gori continued: "Historically, credit card partnerships have been an area of strength for Citibank globally. Citibank Australia is taking a lead and gaining a reputation for the best practice not only in Australian market, but also at an international level within our own company."
The agreement will be reflected as a one-off item in the Suncorp Group results for the year to June 30, 2008.
In addition, Suncorp will benefit from a growing contribution to non-interest income, including a significant share of revenues generated by the portfolio as it grows.
The transaction is expected to be completed by 31 March 2008 subject to approval from the Foreign Investment Review Board.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.