Strategy

Lloyds Aims For Top-Five Private Banking Status In UK

Tom Burroughes, Editor, London, 27 April 2010

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Lloyds Banking Group, the UK bank, plans to become one of the five largest private banks in the UK within five years after expanding its wealth management service to suit more high net worth individuals, a senior executive said.

Expansion of the wealth management arm will rely largely on referrals from existing retail and corporate banking clients but the bank is actively looking to hire more senior bankers from rivals, Malcolm Glaister, a director in charge of the high net worth client business, was quoted as saying by Reuters and later confirmed by this publication.

Lloyds is currently partly owned by the UK government due to the bailout of the group after it acquired debt-laden HBOS at the height of the credit crunch.

Glaister said Lloyds is also introducing its Geneva-based international service to UK customers with wealth over £2 million (around $3.1 million).

To break into the top flight of UK private banks, Lloyds must more than double assets under management at its UK private client business from around £11 billion, the news agency said.

At present, the UK private banking industry is dominated by firms such as Barclays Wealth and Coutts.

A spokesperson for Lloyds confirmed that its wealth division, known as Lloyds TSB International Private Banking, is launching in the UK with the aim of being a top-rank player.

Under the changes, clients with £2 million or more banked/invested with Lloyds will be offered the new private banking service; this includes some clients from Lloyds TSB Mayfair Private Banking and Bank of Scotland Private Banking.

Lloyds Bank Group plans that its combined UK private banking operations - Lloyds TSB IPB and UK Private Banking (for those with £250,000 - £2 million) will place it in the top five private banks in the UK in the next five years, the bank told this publication.

Internationally, Lloyds TSB Private Banking had £16.595 billion assets under management at the end of December 2009.

In the UK, it had approximately £6 billion assets under management at the end of December 2009 (i.e. these are the assets under management of Lloyds Banking Group for clients with over £2 million banked or invested with Lloyds).

The new service is being headed by Guy Healey, while Glaister is head of key clients and front office.

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