Swisscard owners CS and Amex do not want to renew contract
Published: Monday, Jun 3rd 2024, 08:50
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There could be changes in the ownership of Swisscard. Credit Suisse and American Express have informed the credit card issuer that the shareholder agreement is not to be renewed.
However, this will have no immediate impact on cardholders, merchants or partners, according to a statement issued on Monday. Swisscard AECS GmbH is a joint venture between Credit Suisse Switzerland and American Express Swiss Holdings, which each hold 50 percent.
According to Swisscard, options for the future strategic direction are being examined with the shareholders. This also includes adjustments to the ownership structure, which are in line with the terms and conditions of the outstanding ABS notes (asset-backed security). The issuers will report further information as it becomes available.
On the planned buyback date of June 17, Swiss Credit Card Issuance 2021-1 AG will, as planned, buy back all of the ABS bonds it has issued with a value of CHF 200 million, Swisscard added. In addition, no further ABS transactions will be placed, reducing the total of outstanding ABS notes issued by Swisscard vehicles to CHF 400 million.
Decision by the end of the year
It is not clear whether the announcement is related to the takeover of CS by UBS. When asked by the news agency AWP on Monday, the big bank also left open whether the now only major bank in Switzerland will be leaving the Swisscard business, reducing its share or merely adjusting the conditions of the contract.
"We are currently in talks with Swisscard and American Express," said a UBS spokesperson on Monday. The Group expects to be able to provide further information before the end of 2024.
UBS acquired Credit Suisse last year and expects the local country organizations - UBS Switzerland and CS Switzerland - to merge in the third quarter of 2024, after which CS Switzerland is to be gradually transferred to the UBS systems in 2025.
American Express values Swisscard customers, according to the US credit card provider. And: "We are currently examining options for the future of our business in Switzerland." Information will be provided as soon as the company has more clarity.
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