Lloyds Spins Off Miami Private Banking Business

Harriet Davies Editor - Family Wealth Report 30 May 2013


Lloyds Banking Group is selling its International Private Banking business in Miami, FL, to Spain’s Banco Sabadell for an all-cash sum of up to £8 million ($12.1 million).

The announcement came just hours after Lloyds said it was selling its Geneva-based private bank to Union Bancaire Privée, and followed the sale of its Spanish retail operations to Banco Sabadell in April.

Lloyds said it is reducing and simplifying its international businesses to focus its wealth management operations on the UK, the Channel Islands, and UK expats.

The London-listed bank, which has been partly owned by the UK taxpayer since it was bailed out after the 2008 financial crisis, earlier this month placed around £450 million of shares after announcing it would sell stocks in St James’s Place, the wealth management business.

The Miami business

The Miami private banking business had around £800 million in assets under management as of March 31, 2013, and total balance sheet assets of around £35 million. It reported a loss last year of approximately £3 million.

Lloyds expects to receive £4 million at closing, with the rest of the payment (a further £4 million) payable in the year following the transaction, depending on the performance of the business.

The deal is subject to a number of conditions, including regulatory approval, and is expected to complete by the end of this year.


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