In a week that is typically quite quiet in the markets as attentions turn to the festive period Lloyds (LON:LLOY) has announced it’s first acquisition since the 2008 financial crisis buying MBNA from Bank of America for £1.9bn. MBNA holds assets of £7bn would increase revenues by £650m a year Lloyds has confirmed, with profits of £166m last year. This will boost the bank’s share of the UK credit card market from 15% to 26% once the deal goes through.

“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 Lloyds chief executive Antonio Horta-Osorio.

Joseph Dickerson, banking analyst at Jeffereise has commented “We expect a 2016 ordinary dividend per share of 2.7p (a special distribution is now unlikely but the MBNA acquisition looks a better use of excess to us than a special).”

Shares in Lloyds were trading higher by 10am up 1.45 per cent on the day at 63.46p a share.