08:43 AM EST, 12/06/2024 (MT Newswires) -- Canadian Tire ( CDNTF ) (CTC.TO and CTC-A.TO) said on Friday that it will retain full ownership of its Canadian Tire Financial Services (CTFS) business, after completing its strategic review of the bank.

As the company scales the Triangle Rewards loyalty program, CTFS will build on its relationship with Triangle credit card holders. Canadian Tire ( CDNTF ) is expanding Triangle Rewards, to not just include its store banners and bank, but also with strategic loyalty partners like Petro-Canada, allowing Triangle members to earn electronic Canadian Tire ( CDNTF ) money (eCTM) outside store channels.

Canadian Tire ( CDNTF ) will also reduce the borrowings associated with its 2023 buyback of 20% of the CTFS business. It said the $258 million proceeds from the sale of a Brampton industrial property last month will be used to reduce debt.

CTFS' existing credit facility of $1.1 billion remains in place until April next year and Canadian Tire ( CDNTF ) is exploring alternatives to replace the facility at maturity.

"The review underscored that Canadian Tire ( CDNTF ) is uniquely positioned to maximize the Bank's long-term financial and strategic potential," said Greg Hicks, president and CEO. "Having reviewed the alternatives, we have gained insights that will make us an even better bank owner, with confidence that this is the optimal path for shareholder value creation, including through a scaled loyalty program.