Wesfarmers Ltd
(ASX:WES) has announced that Coles has entered a 10-year contract with global credit card provider, Citi.
Under this agreement, Coles will continue to distribute credit cards under its own brand. After some time, Citi will become the credit card issuer, manage the operations of the credit card portfolio, and fund the receivables.
Citi will also acquire the existing credit card receivables and Coles will receive an ongoing share of risk adjusted revenues.
Wesfarmers says the portfolio had gross receivables of around $880 million at October 2016.
Wesfarmers posted a net profit of $407 million at 30 June 2016.
