Lloyds Banking Group and investment giant Schroders have confirmed they are in talks over the creation of a new wealth management venture.
The deal could see Lloyds merge its £13 billion wealth management arm into the new entity, which would be 50.1% owned by the lender.
A Lloyds spokesman said: “Lloyds Banking Group and Schroders are in ongoing talks with a view to the two groups working together in the wealth sector, and any further announcement will be made at the appropriate time.”
As part of the tie-up, it has been reported that Schroders would also take on the £109 billion investment management contract from Scottish Widows, which is owned by Lloyds.
Schroders said in a stock market update: “Following recent media speculation, Schroders plc confirms that it is in discussions with Lloyds Banking Group plc with a view to working closely together in parts of the wealth sector.
“Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate.”
For Lloyds, it would enjoy access to the Schroders technology and investment platform, while for Schroders it would have access to the bank’s vast customer base.