LONDON (AFX) - Barclays PLC (Nachrichten/Aktienkurs) is reviewing its credit card partnership deals with a string of blue chip companies, including BSkyB, Thomas Cook and Argos, as part of a cut in its exposure to consumers with poorer credit histories, The Sunday Telegraph reported.
The report said bad debts at the bank rose 37 pct last year to 2.15 bln stg as the debt-laden British public were put under further strain by rising interest rates. Profits at Barclaycard fell 40 pct, meanwhile.
Although many of the partnership agreements have only been struck in recent months, the report said it is understood that John Varley, Barclays chief executive, wants all the relationships reviewed in light of the high bad-debt charges across the card business.
Varley said he believes the worst of the bad debt cycle is over. But he has already put Monument, the bank's sub-prime credit card business, up for sale, The Sunday Telegraph said.
The report added that a deal with CompuCredit, a US credit card company, is expected within days and that Clydesdale Financial Services has also been put on the auction block by Barclays.
rhys.jones@afxnews.com
Barclays reviews credit card partnerships - report
rj/wj
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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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The report said bad debts at the bank rose 37 pct last year to 2.15 bln stg as the debt-laden British public were put under further strain by rising interest rates. Profits at Barclaycard fell 40 pct, meanwhile.
Although many of the partnership agreements have only been struck in recent months, the report said it is understood that John Varley, Barclays chief executive, wants all the relationships reviewed in light of the high bad-debt charges across the card business.
Varley said he believes the worst of the bad debt cycle is over. But he has already put Monument, the bank's sub-prime credit card business, up for sale, The Sunday Telegraph said.
The report added that a deal with CompuCredit, a US credit card company, is expected within days and that Clydesdale Financial Services has also been put on the auction block by Barclays.
rhys.jones@afxnews.com
Barclays reviews credit card partnerships - report
rj/wj
COPYRIGHT
Copyright AFX News Limited 2007. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
