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HSBC to Reap $2.4 Billion Gain From Sale of U.S. Card Division

HSBC Holdings Plc, Europe’s biggest bank, will reap a $2.4 billion after-tax gain from the sale of its U.S. credit card division to Capital One Financial Corp. as the lender focuses on growth in emerging markets.

Capital One will pay a $2.6 billion premium to the division’s loans to customers, for a total price of about $32.7 billion, London-based HSBC said in a statement today. The acquisition will add to Capital One’s earnings in 2013, the McLean, Virginia-based bank said separately.