OTTAWA, On, May 30, 2007 /PRNewswire/ -- MBNA Canada Bank and CUETS today announced an agreement for MBNA to acquire CUETS, the largest and most respected MasterCard credit card issuer for credit unions in Canada. Under the terms of the agreement, CUETS will become a subsidiary of MBNA Canada Bank, leveraging superior capabilities of both companies to increase customer value and grow market share in Canada.
The acquisition significantly increases the size and capabilities of MBNA Canada Bank, a subsidiary of Bank of America, solidifying its position as the country's leading provider of affinity and co-branded consumer lending products and the second largest MasterCard issuer in Canada based on loans outstanding.
"We are bringing together two great consumer lending organizations with highly complementary strengths, similar business models, and a shared passion for serving the unique needs of Canadians," said Debra Armstrong, president, MBNA Canada Bank. "By partnering together, CUETS and MBNA have raised the bar in the marketplace, providing credit unions with a greater opportunity to provide superior payment products to Canadians."
CUETS is currently jointly owned by Credit Union Central of Saskatchewan (SaskCentral) and Credit Union Central Alberta Ltd. The agreement is subject to regulatory approvals. The new MBNA Canada subsidiary housing the CUETS business will be led by Stan Kuss, currently chief executive officer of CUETS. CUETS' workforce, which is primarily based out of a head office in Regina and a service centre in Winnipeg, will be combined with the current MBNA workforce, which works out of MBNA's head office in Ottawa.
CUETS board chair and CEO of SaskCentral, Sid Bildfell, said the sale is a strategic move that is in the best interest of CUETS, its credit union clients and their members. "CUETS and its clients will now have the opportunity to incorporate the MBNA products, service and marketing strategies to achieve even greater results with their programs."
Bildfell also noted that CUETS will stay committed to the communities in which it operates. "Our sale arrangement with MBNA includes a continued presence for CUETS and employment of CUETS employees in our home cities of Regina and Winnipeg."
About MBNA Canada Bank
MBNA Canada Bank, a subsidiary of Bank of America Corporation, is the leading provider of co-branded and affinity credit card programs in Canada, and the second largest MasterCard issuer in the country. MBNA credit cards and related products and services are endorsed by nearly 500 Canadian organizations. MBNA provides financial products and services throughout Canada from its headquarters in Ottawa.
About CUETS
CUETS is a national supplier and partner in the Canadian co-operative system, providing a complete range of advanced payment systems and services to credit unions, caisses populaires, cardholders, merchants and other organizations. CUETS offers MasterCard® products and services, backed by one of the most widely recognized brands in the world. The CHOICE REWARDS® loyalty program gives participants flexibility in merchandise and travel rewards selection. CUETS is based in Regina, Saskatchewan, Canada. To learn more about CUETS, visit www.cuets.ca.
About Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 56 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 ATMs and award-winning online banking with nearly 22 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Reporters May Contact:
Cathy Velazquez, Communications, MBNA Canada Bank, 613-907-4911 or cathy.velazquez@mbna.com
Janelle Lindsey, SaskCentral, Marketing and Communications, 306-566-1684 or janelle.lindsey@corpserv.ca
Erin Harde, Corporate Communications, CUETS, 306-566-1559 or erin.harde@cuets.ca
Web site: www.cuets.ca
http://www.mbna.ca/
http://www.bankofamerica.com/
