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Friday 23rd of October 2009
October 20, 2009    

Lloyds sells non-core business to Rathbone

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by Kay Murchie
Lloyds sells non-core business to Rathbone

Following a review of its investment management business, banking giant Lloyds has sold some of its private client funds to Rathbone Brothers after concluding that they were “no longer core” for the bank.

The bank said approximately 6,000 customers with funds totalling £1.27 billion will transfer to Rathbone Brothers. If all of the funds are transferred, the total price payable to Lloyds would be £35.4 million.

The announcement comes just a week after the bank confirmed the sale of its Halifax estate agency business to LSL Property Services for £1.

The sale of the estate agency business put 460 jobs at risk - including 360 full time positions.

Meanwhile the sale of assets to Rathbone is expected to result in the loss of 40 jobs in Edinburgh over the next two years.

The bank, which is 43% state-owned, said it will continue to manage £8.5 billion of assets under management for around 35,000 “high net worth” clients - these will not be affected by the deal, said the bank.

In other news, Lloyds announced earlier this month that in order to avoid participating in the Government’s Asset Protection Scheme (APS), it is looking at ways to raise cash with one option being tapping investors for £15 billion - which would be the biggest ever rights issue in UK corporate history.

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