TORONTO, Sept. 1 /CNW/ - CIBC announced today it has completed its acquisition of an approximately $2-billion credit card portfolio from Citigroup's Canadian MasterCard business, making CIBC the largest dual issuer of Visa and MasterCard credit cards in Canada. The MasterCard portfolio includes accounts associated with co-branded Petro-Canada credit cards that offer the Petro-Points rewards program.

"This acquisition is consistent with CIBC's strategy to support the growth of our core Canadian franchise," said Gerry McCaughey, President and Chief Executive Officer of CIBC. "It represents an important addition to our client base in a business where we have a leading presence in the Canadian marketplace."

CIBC had more than $14 billion in outstanding credit card balances prior to the addition of the MasterCard portfolio, which is expected to be immediately accretive to CIBC's earnings.

"This acquisition will allow us to leverage our strong presence and capabilities in the credit card business," said Sonia Baxendale, President of CIBC Retail Markets. "We look forward to welcoming our new clients and showing them the additional benefits we can offer them as part of CIBC."

Under terms of the transaction, prior to closing, non-performing accounts were removed from the acquired portfolio and from the securitized pool relating to Broadway Credit Card Trust, which has securitized certain Citibank MasterCard receivables.

CIBC will acquire all of the outstanding Class B notes, Class C notes and Series Enhancement Notes issued by the Trust and will assume the servicing and associated responsibilities in respect of the Trust. The Class B notes are rated A2 by Moody's and A by DBRS. The Class C notes are rated Baa1 by Moody's and BBB by DBRS.

CIBC is a leading Canadian-based global financial institution. Through our two main operating groups, CIBC Retail Markets and Wholesale Banking, CIBC provides a full range of financial products and services to almost 11 million individual, small business, commercial, corporate and institutional clients in Canada and around the world. CIBC is amongst the best capitalized banks in the world with a Tier 1 ratio of 14.2 per cent at July 31, 2010.

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