UBS Sells Stake in Swisscard

ZURICH (Reuters) – UBS is divesting part of the Credit Suisse business by selling its 50% stake in Swisscard, a credit card provider.

UBS will sell its holding to its joint venture partner, American Express (NYSE:AXP), according to a statement from Swisscard. The terms of the deal have not been disclosed.

After the completion of the transaction, American Express will become the sole owner of Swisscard. Credit Suisse customers will be transitioned to UBS's existing credit card platform.

Swisscard will continue to issue cards under the licenses of American Express, Mastercard (NYSE:MA), and Visa (NYSE:V), and will maintain its operations with American Express in Switzerland. According to the company, there will be no immediate impact on cardholders, merchants, or partners.

Since UBS's emergency takeover of Credit Suisse last year, it has sold off various parts of the bank's business. In June, UBS sold a stake in Credit Suisse Securities (China), and in July it agreed to sell a former insurance-linked investment arm to its management.

On Monday, UBS reaffirmed its commitment to its credit card business but noted that issuing cards in Switzerland through Swisscard did not align with UBS's strategic priorities and operational setup as the legal successor to Credit Suisse.

Cardholders using Credit Suisse branded credit cards will be informed about the new card issuance in the first half of 2025, and no action is required from them at this time.