Lloyds Banking Group completes acquisition of consumer credit card firm MBNA

Lloyds Banking Group has completed the acquisition of consumer credit card business MBNA from Bank of America after regulators approved the £1.9 billion deal.

According to the banking giant, MBNA which held assets of £7 billion, would deliver strong financial returns and bolster its position in the UK prime credit card market.

Group chief executive of Lloyds, Antonio Horta-Osorio said MBNA was a "good fit" with the bank's credit card business.

"The acquisition, which is funded through strong internal capital generation, increases our participation in the UK prime credit card market, where we were underrepresented, and strengthens our position as a UK-focused retail and commercial bank," he said.

The deal is expected to provide £650 million-a-year boost to Lloyds' group revenues, while enhancing the net interest margin by around 10 basis points per year.

Lloyds aimed to deliver cost savings of around £100 million per year within two years at MBNA, representing 30 per cent of the unit's cost base.