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London – Lloyds bank has agreed to buy US credit card business MBNA from Bank of America for 1.9 billion pounds ($2.4 billion), the British bank said on Tuesday.

The acquisition of MBNA will help Lloyds raise its share of the British credit card market from 15 per cent to 26 per cent, increasing its annual revenue by some 650 million pounds, it said.

“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,” Antonio Horta-Osorio, Lloyds’ chief executive, said in a statement.

“Our low cost to income ratio and proven integration capabilities will deliver significant synergies and value to our shareholders,” Horta-Osorio said.

The deal for MBNA, which has assets totalling some 7 billion pounds, is expected to be completed in the first half of 2017, subject to regulatory approval.

It includes an undertaking by Lloyds to cover claims valued at 240 million pounds for mis-sold payment protection insurance (PPI), Lloyds said.