Bank of America Relaunches Sale of Credit-Card Issuer MBNA -- Sources
28 May 2016 - 4:19AM
Dow Jones News
By Max Colchester
Bank of America Corp. has relaunched the sale of one of the
U.K.'s biggest credit card companies MBNA, according to people
familiar with the matter.
The card business, which has about 5 million customers and a
loan book of around GBP7 billion ($10.2 billion), is being shopped
to a number of potential buyers including Lloyds Banking Group PLC,
according to people familiar with the matter.
Bank of America decided to sell the U.K. MBNA cards business in
2011 as it ditched several international credit card businesses to
bolster its balance sheet. But the sale of the U.K. business was
axed a year later. Virgin Money, and Goldman Sachs Group Inc. in
conjunction with Apollo Management LP, had looked at the business
back then.
MBNA, which has about an 11% market share of the U.K. credit
card market, is now attracting interest from U.K. retail banks
looking to put their excess capital reserves to work.
Lloyds, for instance, has been trying to grow its credit card
business and executives have said in the past it would look at
acquisitions of specific loan portfolios. Up until recently the
part-nationalized lender was blocked from making acquisitions.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
May 27, 2016 14:04 ET (18:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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