American Express acquires full ownership of Swisscard amid UBS sale
- American Express is set to acquire UBS's 50% stake in Swisscard as part of UBS's restructuring strategy.
- UBS intends to shift its focus after its emergency acquisition of Credit Suisse, leading to the sale.
- This transaction will enable American Express to enhance its presence in the credit card market in Switzerland.
On October 21, 2024, UBS Group AG announced its intention to sell its 50% stake in Swisscard to American Express. This decision is a part of UBS's larger initiative to streamline its operations after taking over Credit Suisse earlier in the year. Swisscard confirmed the transaction, though the financial terms of the deal have not been revealed. This strategic divestiture highlights UBS's shift in focus, as issuing cards through Swisscard does not align with its current goals. UBS's restructuring efforts have been extensive, previously including the liquidation of significant assets, such as a $2 billion real estate fund from Credit Suisse. The bank plans to transition customers from Credit Suisse to its existing credit card platform, signaling a comprehensive approach to refining its financial services. By mid-2025, UBS aims to inform Credit Suisse cardholders about new card issuance. Despite the challenges faced by American Express, such as mixed results in its third-quarter report, there remain positive indicators like improved expense management and net interest income growth. These aspects suggest potential for American Express to regain momentum. The change in ownership will not disrupt Swisscard's operations in the near term, as the company will continue issuing cards under established licenses in Switzerland. This acquisition could enhance American Express's competitive position in the Swiss credit card market and strengthen its brand presence.