Bank of America (BofA) has agreed to sell its Canadian credit card business to TD Bank and will also exit its card operations in the UK and Ireland.
TD Bank says it will pay a "modest premium" on the $8.6 billion MBNA Canada portfolio, which adds around 1.8 million active accounts to the bank's base.
The deal - slated to close in the fourth quarter, subject to regulatory approval - is part of BofA's strategy to sell off non-core assets and build up capital to meet new regulations.
The UK business lending portfolio and Spanish card business have already been disposed of and the UK and Ireland credit card businesses, which have a combined $19 billion in loans and more than 4000 employees, are next on the block.
Brian Moynihan, CEO, BofA, says: "Our strategy is clear: We have been transforming the company to deliver the franchise to our core customer groups, and building a fortress balance sheet behind that. While the credit card remains a fundamental core product for our US customers, an international consumer card business under another brand is not consistent with that strategy."