An image from MBNA's recent advertising campaign. MBNA LONDON — Lloyds Banking Group is buying the MBNA UK credit card business from Bank of America for £1.9 billion ($2.4 billion) in an effort to increase profit and reduce its reliance on mortgage lending.

The move represents the first major acquisition for Britain's biggest mortgage lender, which is part-owned by the government, since it was bailed out during the 2007-09 crisis.

Lloyds said the deal, which is expected to close in the first half of 2017, includes around £800 million of acquired equity and assumes £240 million for future claims for mis-sold loan insurance (PPI).

Analysts said the move represented a good use of the bank's excess cash, but warned it carried some risks given Britain's uncertain economic outlook following the country's vote to leave the European Union in June.

"Lloyds will be broadly doubling up its exposure to credit cards at a particularly benign point in the bad debt cycle and ahead of a potential slow-down... once the terms of the UK's exit from the EU are reached," Gary Greenwood of Shore Capital said.

The British lender said it would pay through cash generated by its ordinary business operations.

"The acquisition... increases our participation in the expanding UK credit card market with a multi-brand strategy and advances our strategic aim to deliver sustainable growth as a UK focused retail and commercial bank," António Horta-Osório, Group Chief Executive, said.

Lloyds said it was confident of being able to deliver a progressive and sustainable ordinary dividend in 2016, but Greenwood said the bank might reconsider its special dividend promised for the end of the year in order to fund the deal.

The deal will lift the contribution of the consumer finance business to 21% of the bank's pre-tax profits from 17%, reducing Lloyds' reliance on the UK mortgage business, Joseph Dickerson of Jefferies said.

MBNA, which made after-tax profits of £123 million in the first half of 2016, would add £650 million a year to group revenues, Lloyds said, adding the deal could shave £100 million a year from MBNA's cost base. ($1 = 0.8073 pounds)

(Editing by Alexander Smith)