The business was acquired from FIA Jersey Holdings, a subsidiary of Bank of America.
Lloyds Banking stated that the transaction is in line with its ambition to grow in the consumer finance sector.
Beside, the acquisition will enable it to bolster its position and offering through the MBNA brand within the UK prime credit card market.
Lloyds Banking Group CEO António Horta-Osório said: “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.
“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. Our proven integration capabilities and low cost to income ratio will deliver significant synergies and value to our shareholders.”
It was in late December 2016 that Lloyds Banking entered into a definitive agreement with FIA Jersey to buy the latter’s MBNA credit card business in the UK.
At that time, Lloyds Banking stated that MBNA has a high quality customer base based on solid underwriting principles and credit management. This, the banking giant said complements its plan of action to achieve sustainable growth by implementing a multi-brand strategy.
Earlier in the week, MBNA had made the Samsung Pay option available to its UK customers using compatible Samsung devices.
According to the credit card expert, its UK customers can load their MBNA credit card into Samsung Pay to make mobile payments.
Image: Lloyds Banking has bought MBNA credit card business for £1.9bn. Photo: courtesy of MBNA Limited.
