CHESTER-BASED finance house MBNA says there will be ‘no jobs’ impact from the sale of £1bn of credit card assets to Virgin Money.
The move follows Virgin’s decision to launch its own credit card business as it develops a financial services venture after taking over Northern Rock building society.
In the past Chester Business Park-based MBNA, which is believed to employ about 2,000 staff, has managed and serviced credit cards on behalf of Virgin.
An MBNA spokesman said: “We can confirm that we have reached an agreement to end our partnership with Virgin and as part of the agreement have sold a third of our Virgin-branded consumer credit card portfolio – £1bn in loans outstanding – to Virgin Money.
The remaining two thirds of the Virgin-branded business will stay with us and, over time, will be rebranded onto the MBNA brand.
“We have had a long and successful partnership with Virgin but it suits us both to move forward separately.
“This is a great outcome for us and means that our MBNA brand will have even greater presence in the UK market.
“No staff will move to Virgin Money as part of the sale. We still have many partnerships and much to do to support our millions of existing customers, so it’s very much business as usual for us, for our customers and for all our staff.”
Jayne-Anne Gadhia, chief executive of Virgin Money, said: “Launching Virgin Money Cards is an excellent strategic opportunity for Virgin Money, in a market we know well.
“A credit card business will complement our existing mortgages and savings business and represents another significant step in growing our bank.”