Citigroup's partnership with Costco may be old news, but Citi CEO Michael Corbat said he still considers the deal, which the big bank took from competitor American Express, a huge success.
In a wide-ranging interview with "Mad Money" host Jim Cramer, Corbat said the deal with Costco 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 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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