UBS offloads 50% stake in Swisscard to American Express

UBS has announced the sale of its 50% stake in Swisscard to joint venture partner American Express, positioning Amex as the sole owner of the Swiss credit card provider. This deal, which follows UBS’s acquisition of Credit Suisse in 2023, underscores the bank’s ongoing efforts to streamline operations and align its portfolio with long-term strategic goals.

Swisscard confirmed the transaction in a statement, reports Reuters, though the financial terms of the deal remain undisclosed. UBS’s decision to sell its stake is part of a broader restructuring strategy, with the bank continuing to divest parts of the Credit Suisse business that no longer align with its operational setup.

The deal comes after a series of other strategic sales by UBS, including the offloading of its stake in Credit Suisse Securities (China) in June and the sale of an insurance-linked investment unit in July.

Impact on cardholders

For Swisscard, the change in ownership is expected to be seamless, with the company assuring that existing cardholders, merchants, and partners will experience no immediate disruptions.

Credit Suisse customers, however, will be moved to UBS’s credit card platform by mid-2025. UBS has confirmed that no action will be required from cardholders, and they will be informed about the new card issuance in the first half of 2025.

Swisscard will continue to issue credit cards under the American Express, Mastercard, and Visa licenses, maintaining its operations within Switzerland. This transition will enable American Express to further consolidate its position in the Swiss credit card market, while Swisscard remains a key player in the region.

Behind the sale

The sale of Swisscard forms part of UBS’s ongoing efforts to optimise its business after the emergency takeover of Credit Suisse. UBS has reiterated that issuing credit cards through Swisscard no longer aligns with its strategic priorities. By divesting non-core assets, UBS can focus on integrating Credit Suisse’s assets that complement its broader business model.

This restructuring aligns with UBS’s long-term objective of simplifying its operations and enhancing synergies within its newly acquired businesses. While UBS remains committed to its credit card business, it has chosen to operate these services within its own platform, rather than through the Swisscard venture.

American Express, on the other hand, stands to benefit from full ownership of Swisscard, allowing it to bolster its presence in Switzerland’s highly competitive financial services market. The acquisition is expected to provide American Express with greater control over Swisscard’s operations and a stronger foothold in the country.

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