Benzinga | Sep 2, 2021 06:29AM EDT

CIBC Reports Signed Long-Term Deal To Become Exclusive Issuer Of Costco Mastercards In Canada

CIBC (TSX:CM) (NYSE:CM) announced today that it has signed a long-term agreement to become the exclusive issuer of Costco Mastercards in Canada, expected to start in early calendar year 2022.

CIBC will also acquire the existing Canadian Costco credit card portfolio, which meets the needs of millions of Canadians and has over $3 billion in outstanding balances. Mastercard will remain the exclusive payment network for the Costco cobranded credit card in Canada and acceptance in Costco warehouses in Canada.

Today's announcement reflects CIBC's strategic focus on growing its Canadian consumer franchise. The portfolio acquisition significantly grows and diversifies CIBC's credit card portfolio in the everyday rewards category, complementing the bank's strength in the travel rewards space. This agreement with Costco will provide an opportunity to deepen relationships with new clients from across Costco's large and growing member base.

"We are excited to partner with Costco, one of the best and most recognizable brands in Canada for providing unparalleled value, to enhance the rewards program and deliver even more value to their members," said Laura Dottori-Attanasio, Group Head, Personal and Business Banking, CIBC. "This relationship enables us to diversify our credit card portfolio in everyday rewards, grow our market share in payments, and provides a meaningful opportunity to deepen relationships by meeting the financial needs of Costco members."