Wachovia Weighs Sale of Credit Card Business

Wachovia Corp., the fourth-largest bank in the Southeastern U.S., hired Credit Suisse First Boston to determine whether it should sell its $8-billion consumer credit card business. Wachovia, which said it is the 12th-largest bank card issuer, also is considering forming a joint venture or keeping the business. The bank has about 2.8 million active consumer card accounts. Its commercial card accounts, with less than $100 million in receivables, aren’t part of the review. Wachovia’s fourth-quarter profit fell 3.5% over the year-earlier quarter as it set aside more for potential commercial loan losses. The credit card business made up about 15% of Wachovia’s net income in 2000, said Catherine Murray, an analyst at J.P. Morgan Chase & Co. who rates Wachovia “market perform.” Banks have been hurt recently by intense competition in the credit card business, as rivals cut interest rates and customers jump from one card company to another. Wachovia shares fell $1.15 to close at $66.15 on the Big Board.