Capital One Financial (COF) announced plans Tuesday to repurchase up to $1 billion of its common shares, contingent on the previously announced sale of a credit card portfolio to Citigroup (NYSE: C).

The Federal Reserve Board has tentatively approved such repurchases through the end of the first quarter of next year, the McLean, Va., credit card company said in a news release.

The repurchases hinge on Capital One's sale to Citi of a $7 billion portfolio of credit card accounts associated with the electronics retailer Best Buy. Cap One reiterated Tuesday that it expects the deal to close in the third quarter of this year.

The Best Buy accounts had been part of a larger $30 billion card portfolio that Capital One purchased last year from HSBC.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.