Lloyds Bank buys MBNA credit card firm for £1.9bn

Lloyds Banking Group is to buy credit card firm MBNA from Bank of America in a £1.9bn deal.

Lloyds chief executive Antonio Horta-Osorio said MBNA would be a "good fit" with the bank's current credit card business.

The bank, which is nearly 7% state-owned, said its share of the UK credit card market would increase from about 15% to 26% after the transaction.

The deal is expected to be completed in the first half of 2017.

Lloyds said MBNA, which holds assets of £7bn, would increase group revenues by £650m a year.

The price paid by Lloyds assumes £240m to cover claims for mis-selling payment protection insurance (PPI).

Lloyds said the MBNA deal would bring a "significant opportunity for cost synergies".

The banking group has been implementing a restructuring plan, and in October confirmed that more than 1,200 jobs would be lost.