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HSBC agreed to sell the profitable card and retail services operations, while keeping the unprofitable finance business and running down the loan portfolio.
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Capital One, best known for its profitable credit card business and catchy television ads, is quietly amassing a big national banking franchise.
Kahr had been developing computer formulas that identified profitable credit card customers, those most likely to run up big balances and pay them off with interest.
But signature debit is more profitable for card issuers, which is presumably why there hasn't been aggressive movement in this direction.
Why is Sears, Roebuck selling its profitable credit card unit to concentrate on a sagging retail unit that can't seem to attract shoppers?
Sears' 26% gross operating margin is also at the bottom when you strip out earnings from its now highly profitable credit card operations.
Barclays, in contrast, has a lucrative domestic market to fall back on, plus a profitable credit-card operation.
Operating profit at the Sears credit division declined nearly 2percentt last year, but the company was still the fifth-most-profitable credit card issuer last year, Mr. Robertson said.
But last month, the credit business -- which is the third-most-profitable credit card operation anywhere -- was rocked by the abrupt departure of Kevin T. Keleghan, the executive who ran it for three years.
Sears Roebuck reported an 83% drop in second-quarter earnings and fell far short of Wall Street's expectations Thursday, suffering from continued weak sales and the absence of the profitable credit-card unit which it sold last year.
Advanta said it would now focus on its more profitable business credit card division.
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