Target Could Sell $7 Billion Card Portfolio: Report

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Unknown Author September 12, 2007 (Be the first to respond) http://www.insidearm.com/daily/credit-card-accounts-receivable/credit-card-receivables/target-could-sell-7-billion-card-portfolio-report/

Target Corp. is considering putting its credit card portfolio up for sale, according to a news report.

Target Chief Financial Officer Douglas A. Scovanner said at a recent Goldman Sachs investor conference that the Minneapolis-based retailer would consider selling its card and real estate portfolios, according to a report on TheStreet.com today.

The portfolio had receivables of $6.9 billion on Aug. 4, the end of Target’s fiscal second quarter, up from $6.0 billion at the same time in 2006, Target reported. The 90-day delinquency rate at quarter’s end was 2.3 percent, up from 2.2 percent in the previous year. Net write offs as a percent of average receivables was 5.4 percent, up from 4.6 percent a year ago. Its allowance for bad accounts rose to $509 million in the second quarter, up from $501 million.

Target issues its Target Visa card and Target card through its Target National Bank. As of May, Target operated 1,502 stores in 47 states and 187 SuperTarget stores in 21 states.

Target did not return calls for comment.

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