Lloyds to buy BOA's UK credit-card unit for £1.9b
The British bank forecasts some 17% underlying return on investment in second full year after MBNA's acquisition
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London
LLOYDS Banking Group plc agreed to buy Bank of America Corp's (BOA) MBNA credit-card business in the UK for £1.9 billion (S$3.4 billion) in cash, marking its first major deal since being rescued by British taxpayers eight years ago.
The acquisition of MBNA, which has about £7 billion of assets, will add £650 million a year to Lloyd's revenue, equivalent to a 4 per cent increase, according to a statement on Tuesday. As part of the deal, the London-based bank negotiated a £240 million cap on MBNA's future payouts for the payment-protection insurance (PPI) scandal.
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