Virgin Money to launch own credit card arm after MBNA deal

LONDON Fri Jan 18, 2013 10:13am EST

LONDON Jan 18 (Reuters) - Virgin Money, the British financial group backed by Richard Branson, said on Friday it will launch a credit card business after buying 1 billion pounds ($1.6 billion) of assets from Bank of America's MBNA unit.

The loans being bought are from the Virgin credit card portfolio which has been managed and serviced by MBNA since 2002 under a partnership agreement.

The book will be fully transferred to Virgin Money early next year. Virgin Money, which bought Northern Rock a year ago, said it expected to create at least 150 new jobs through its own credit card business.