The UK-based bank plans to exit the government's asset protection scheme
As part of divestment of some of the non-core assets that it got when acquired HBOS, Lloyds Banking Group is mulling to sell parts of Bank of Scotland’s wealth management assets to Rathbone Brothers – reported The Financial Times.
Rathbone’s core business is discretionary wealth management. It is interested to make incremental increases to its portfolio. BoS’s private client investment division has funds under management of approximately GBP1 billion. According to some sources the transaction is expected to be worth approxiamtely GBP50 million. Earlier, it was also reported that the bank was in talks to sell Halifax Estate Agencies to LSL Property Services.
By spinning off BoS’ assets Lloyds aims to streamline its expanded business and integrate HBOS operations. Further, the UK-based bank is planning to raise close to GBP25 billion so that it can avoid joining the government’s asset protection scheme, reported the newspaper.