Citigroup CEO touts the $100 billion gold mine Citi took from American Express
Citigroup's partnership with Costco may be old news, but Citi (NYSE:C) CEO Michael Corbat said he still considers the deal, which the big bank took from competitor American Express (AXP), a huge success.
In a wide-ranging interview with " Mad Money " host Jim Cramer, Corbat said the deal with Costco (COST) to issue the retailer's branded credit cards was much larger than it may have initially seemed.
"If I came in and said, 'Jim, let me tell you about a deal that we're gonna do. And that deal is going to be with a terrific partner, one of the best retailers in the world. And in that deal we're going to bring in $10, $11 billion of receivables. We're gonna bring in new cardholders. And those cardholders, in a single year, are going to spend $100 billion on that card,' think about it," Corbat said.
The 16-year-long deal between American Express and Costco expired in March 2016. Since then, the discount retail chain has partnered with Citi for its credit cards and Visa (NYSE:V) for its rewards program.
"Costco's a great partner," Corbat said. "It's a great company. And the receptivity of our cardholders and the usage of the cardholders has been great."
Watch Corbat's full interview here:
Disclosure: Cramer's charitable trust owns shares of Citigroup.
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