CIBC to Take Over Capital One’s Costco Canada Card Business (1)

Canadian Imperial Bank of Commerce is taking over Capital One Financial Corp.’s Costco Wholesale Corp. credit card business in Canada, helping diversify its portfolio away from travel rewards.

CIBC will buy Capital One’s existing portfolio of Costco-branded Mastercards, which has more than C$3 billion ($2.4 billion) in outstanding balances, and become the exclusive issuer, according to a statement Thursday. The change is expected to begin in early 2022, Toronto-based CIBC said. Terms weren’t disclosed.

CIBC Chief Executive Officer Victor Dodig said on an earnings call last week that the lender planned to invest in non-travel cards to capture ...