American Express Sells Costco Portfolio to Citibank

NEW YORKAmerican Express announced that it entered into an agreement to sell its Costco U.S. cobranded card portfolio to Citibank N.A. (Citi).

The sale is expected to close June 2016, at which time all eligible Costco American Express Card cobranded accounts will be transferred to Citi. Additional details will be provided to Card Members in advance of the partnership end date.

The ultimate gain on sale will be determined based on the assets actually sold. American Express estimates a gain of approximately $1 billion but the amount could change with the sale still several months away.

American Express has offered an exclusive branded card with Costco for 16 years but the membership retailer decided to replace the card with Visa and Citigroup this year.