WMT Walmart Inc

   By Kimberly Chin 
 

Synchrony Financial (SYF) has reached an agreement with Sam's Club parent Walmart Inc. (WMT) to continue managing and servicing the Sam's Club-branded credit card program.

The agreement also calls for Synchrony to sell a Walmart loan portfolio that it currently services. The transfer of the portfolio is expected to be completed in the third to early fourth quarter of this year.

As part of the agreement, Walmart has also dropped its lawsuit with Synchrony. Walmart has accused the bank of breaching credit card agreements issued to Walmart customers.

"We are very pleased to have reached these agreements. Obtaining certainty around the Walmart portfolio and a renewal on Sam's Club is a great outcome for the company," Synchrony President and Chief Executive Officer Margaret Keane said in prepared remarks.

Synchrony began servicing Sam's Club's credit programs in 1993. It currently provides customers of Sam's Club's nearly 600 store locations with co-branded and private-label credit cards for Club and Plus members.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

January 23, 2019 07:16 ET (12:16 GMT)

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