Bank of America acquired the credit-card issuer MBNA in 2006, creating one of the largest U.S. card portfolios.
The all-stock acquisition was announced in 2005 and completed on January 1, 2006. MBNA, originally known as Maryland Bank, National Association, had grown into a major issuer of credit cards for consumers, organizations, and affinity groups.
The deal expanded Bank of America’s credit-card business and significantly increased its presence in markets outside its traditional branch footprint. MBNA’s expertise included co-branded and affinity cards, which are cards associated with universities, charities, professional groups, or other organizations.
MBNA was not a payment network like Visa or Mastercard. It was primarily a card issuer and lender, meaning it extended credit and managed card accounts while often using established payment networks to process transactions. After the acquisition, MBNA’s operations were integrated into Bank of America’s consumer-banking business.