Bank of America announced today that it has agreed to sell its consumer credit card business in the United Kingdom, MBNA Ltd., to Lloyds Banking Group.
The sale completes the transformation of Bank of America’s consumer credit card business from a multi-country, multi-brand business to a single-brand business serving core retail customers in the United States. The transaction is expected to close by mid-2017, subject to regulatory approval. Depending on closing conditions, Bank of America expects to record a minimal after-tax gain associated with the sale.
The U.K. consumer credit card portfolio has approximately $10 billion in credit card receivables. The transaction does not impact Bank of America’s global commercial card business, which is part of Global Transaction Services, said company officials.
“This transaction is consistent with our focus outside the U.S. on serving corporate and institutional clients through our leading Global Banking and Global Markets businesses," said Jerry Dubrowki, senior vice president of corporate communications at Bank of America. Dubrowski reiterated that the transaction does not impact Bank of America's US credit card business.
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.
"Our strategy has been since 2010 to focus on core customers -- that's retail banking, wealth management, corporate and institutional clients where we have significant presence," said Dubrowski. "Internationally, the card business was single business."
The company serves approximately 47 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 16,000 ATMs, and online banking with approximately 34 million active accounts and more than 21 million mobile active users.
The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.