You are here: Home - Credit Cards & Loans - News -

Lloyds Bank buys credit card firm MBNA

0
Written by:
20/12/2016
Lloyds Banking Group is to buy UK credit card firm MBNA from Bank of America for £1.9bn.
Lloyds Bank buys credit card firm MBNA

Lloyds said the acquisition will “enhance its position and offering” within the prime credit card market.

The deal, which is expected to be completed in the first half of 2017, will take the bank’s market share in credit cards from 15% to 26%.

“The MBNA brand and portfolio are a good fit with our existing card business and we will focus on providing its customers with excellent service and value,” said Lloyds chief executive António Horta-Osório.

Lloyds said the acquired MBNA business, which comprises gross assets of £7bn, is expected to “deliver strong financial returns” and create “significant value for shareholders”.

Lloyds shares rose 1% in early morning trading.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “Lloyds is backing itself despite the uncertain economic outlook, and this deal will mean the bank has now cornered a quarter of the UK credit card market.

“This does mean a special dividend for 2016 has become less likely, but at the same time the additional earnings from the credit card book bolster the dividend-paying prospects of the bank in years to come.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week