Lloyds and Schroders in talks over wealth unit

Lloyds Banking Group and investment giant Schrodershaveconfirmedtheyare 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 per cent owned by the lender.

A Lloyds spokesman said: “Lloyds 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.”

Under the deal, it was reported that Schroders would take on the £109bn investment management contract from Lloydsowned Scottish Widows.