Boston-based Sovereign Bank, a subsidiary of Spanish banking giant Santander, has purchased its own Sovereign-branded credit card portfolio from FIA Card Services N.A., for an undisclosed sum.
The portfolio consists of approximately 105,000 credit card relationships, representing almost $200 million in balances. A majority of the accounts acquired are owned by customers who also have a banking relationship with Sovereign, according to a statement.
"The acquisition of our portfolio will strengthen our relationship with credit card customers and is a key step towards the development of new Sovereign│Santander credit card products," said Nuno Matos, managing director of retail banking at Sovereign. "This will allow us to fully manage the whole financial relationship and provide more convenient service to our customers."
Currently, the Sovereign-branded credit card is issued and administered by FIA Card Services N.A. Account servicing will continue to be handled by FIA Card Services until the migration is completed in 2012, the companies said.
"We are gaining the flexibility to design a line of cards with different value propositions," said Eduardo Tobon, head of Santander’s U.S. Cards Division. "Offering a full suite of Sovereign│Santander credit cards will enhance our entire line of plastics and give customers more options to help them meet their everyday financial needs."
