First Virginia Banks Inc. has agreed to sell its $103 million credit card portfolio to MBNA Corp. of Wilmington, Del.
Under the deal, MBNA is to offer credit cards under First Virginia's name. The sale is expected to close in the first quarter. First Virginia expects a net after-tax gain of about $11 million, or 22 cents per share.
First Virginia is the latest in a string of banks with modest credit card portfolios to sell its holdings and opt for an agent bank relationship.
Barry J. Fitzpatrick, chairman, president, and chief executive officer of First Virginia, said a large issuer like MBNA can offer better service and product features.