Lloyds Banking Group has won the race to buy Chester-headquartered MBNA, one of the UK's biggest credit card issuers, for £1.9bn.

António Horta-Osório, chief executive of Lloyds, said the deal advances its "strategic aim to deliver sustainable growth as a UK focused retail and commercial bank".

MBNA has gross assets of about £7bn and Lloyds said it would add £650m to group revenues. It will also bring cost synergies of approximately £100m per year within two years, representing about 30 per cent of MBNA's cost base.

"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," said Horta-Osório.

"Our low cost to income ratio and proven integration capabilities will deliver significant synergies and value to our shareholders."

MBNA, which is being sold by Bank of America, has been up for sale for some time with the likes of Cerberus, Santander UK and HSBC expressing an interest. The bank employs about 1,700 staff at Chester Business Park.

Horta-Osório added: "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. 

"Our low cost to income ratio and proven integration capabilities will deliver significant synergies and value to our shareholders."

MBNA posted profits of £165.8m for the 2015 calendar year, up by 54 per cent on 12 months earlier. Operating income climbed by 12 per cent to £700.7m over the same period.

The credit card provider was boosted by lower payment protection insurance costs and an expected windfall from Visa Europe changing hands.

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