Capital One said on Tuesday, May 24, 2024, that the credit card partnership agreement under which it had been the exclusive issuer of Walmart's private label and co-branded U.S. credit card program has ended.

1. 01

   Capital One said on Tuesday, May 24, 2024, that the credit card partnership agreement under which it had been the exclusive issuer of Walmart's private label and co-branded U.S. credit card program has ended.

2. 02

   The company said that, under the terms of the agreement, it will retain ownership and servicing of the existing credit card portfolio of about $8.5 billion in loans. About 40% of the credit card loan balances were originated and underwritten by Capital One. It said it plans to convert eligible customers to its own branded card products.

3. 03

   Capital One said the revenue sharing and loss sharing arrangements also ended with the termination of the agreement. It said that without the loss sharing arrangement in Q1 2024, the Domestic Card net charge-off rate would have been about 45 basis points higher and its allowance for credit losses about $850 million higher.

4. 04

   The company said that without the revenue sharing arrangement in Q1 2024, the Domestic Card revenue margin would have been about 45 basis points higher. It also said cardholders can continue to earn and redeem rewards, and that additional information will be provided in the coming months.

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Original filing

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