MBNA America Bank, N.A. Acquires $1.2 Billion Alliance & Leicester plc Credit Card Portfolio

MBNA America Bank, N.A., the world’s largest independent credit card lender, today announced that MBNA Europe Bank Limited has acquired the $1.2 billion credit card portfolio of Alliance & Leicester plc (A&L), one of the UK’s largest financial services companies.

As part of the agreement, MBNA will own A&L’s credit card receivables and will manage the card program under the A&L brand. MBNA will be responsible for all credit, Customer Service, Customer Assistance and operational decisions. The acquisition includes a long-term agreement under which MBNA will market credit cards to A&L’s 5.5 million Customers through A&L’s 310 branches in the UK, and by other means. MBNA also will develop products and services for A&L’s 1.34 million existing cardholders, and for future A&L card Customers.

The characteristics of the cardholders in the A&L portfolio are consistent with the superior quality of MBNA’s existing cardholders.

Bruce L. Hammonds, Chief Executive Officer of MBNA America Bank, N.A., said, “The quality of the A&L card portfolio is exceptional. A&L cardholders have many of the same superior characteristics as existing MBNA cardholders. At the same time, there’s terrific potential for growing the portfolio, which we’ll do by offering a wider range of products and services.”

Richard Pym, Group Chief Executive of Alliance & Leicester, said, “We are delighted to announce this partnership arrangement with MBNA. At Alliance & Leicester we are committed to providing our Customers with a full range of personal banking products, including an attractive choice of credit cards. After a full review we have concluded that the best way to do this for our credit card Customers going forward is through this arrangement with the world’s leading independent credit card lender, MBNA.”

Inclusive of the A&L portfolio, MBNA today has more than a 14% market share of all credit card receivables in the United Kingdom and a 19% share in Ireland. The company has achieved this position by providing Customers the finest products, backed by consistently top-quality service.

MBNA will manage the A&L card portfolio from its administrative and operations facilities in Chester, England. The bank also has facilities in London and in Carrick-on-Shannon and Dublin, Ireland. MBNA also recently announced that it has begun developing operations in Spain.

About Alliance & Leicester plc
Alliance & Leicester is one of the UK’s major financial services groups. It offers a broad range of financial services to personal, commercial and small business Customers. Alliance & Leicester has been a member of the FTSE 100 index of leading shares since converting from its original mutual building society status in 1997. It has over 5.5 million personal customers, including 1.34 million credit cards, with outstanding balances of approximately $1.2 billion.

About MBNA
MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $100 billion in managed loans. MBNA is the largest independent credit card lender in the world and also offers retail deposit, consumer loan and insurance products.