Bank of America Expects to Complete Sale of U.K. Consumer Card Business Ahead of Schedule
Wednesday, May 31, 2017
Bank of America announced today that it expects to complete the sale of its consumer credit card business in the United Kingdom, MBNA Ltd., to Lloyds Banking Group on June 1, sooner than previously communicated.
Upon closing, Bank of America expects to record a minimal after-tax gain associated with the sale. The primary ongoing impacts to the income statement will be a reduction in net interest income, offset in part by a reduction in non-interest expense. In addition, the sale is expected to improve Basel 3 risk-based capital ratios by approximately 11 basis points under the Advanced approaches and 15 basis points under the Standardized approach in the second quarter ending June 30, 2017.
The U.K. consumer credit card portfolio had approximately $9.4 billion in credit card receivables and earned $211 million in interest income in the first quarter of 2017. The transaction does not impact Bank of America's global commercial card business, which is part of Global Transaction Services.
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.
Bank of America
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. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 15,900 ATMs, and award-winning digital banking with approximately 35 million active users and more than 22 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. 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.
Investors May Contact:
Lee McEntire, Bank of America, 1.980.388.6780
Jonathan G. Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840