Lloyds Bank
People walk past a branch of Lloyds Bank on Oxford Street in London, Britain July 28, 2016.Reuters

British financial institution Lloyds Banking Group on Tuesday announced it was buying the credit card business of Bank of America Corp, MBNA. The deal, valued roughly at $2.35 billion, is part of its plan to grow the British bank's consumer finance business. 

On its part, Bank of America had decided to sell the unit way back in 2011, but during the following year, the plan was shelved. Later it relaunched the sale earlier this year.

MBNA has five million customers at present, the Wall Street Journal reported. 

Lloyds, in which the UK government holds 6.93 percent stake, said the transaction is expected to be completed by the first half of 2017 after getting approval from the regulator.

The bank has been trying to expand its credit card business for some time and in the past, Lloyds management expressed it would look at acquisitions of specific loan portfolios.

According to a report by the BBC, MBNA, which holds assets worth seven million pounds, would increase the group's revenues by 650 million pounds a year. "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," Llyods CEO Antonio Horta-Osorio said. 

MBNA will retain its branding and card holders and would not transfer to a new card. However, MBNA will continue to have its own rates, which is separate from those of Llyods credit cards.