Lloyds Banking Group has revealed that it will be transferring a total of £1.27billion worth of funds under management to private banking and investment experts, Rathbone Brothers.
The deal is expected to raise £35.4million for Lloyds, as Rathbones will acquire the HBOS investment arm of Lloyds Banking Group.
Commenting on the agreement, Andy Pomfret, chief executive at Rathbone Brothers Plc said: "This acquisition is a very attractive opportunity to increase Rathbones' funds under management."
As part of the deal, Rathbones will receive an exclusive distribution agreement from Lloyds Banking Group that will provide Rathbones' investment management services to clients.
According to reports, the move will result in a further 40 job losses at Lloyds TSB, which has axed more than 8,000 jobs since it first acquired HBOS this time last year.
Lloyds Banking Group is currently 43 per cent owned by the taxpayer as a result of the HBOS merger, and rumours of a new rights issue are afoot as the bank struggles to reduce its Government ownership.
Before the Rathbones deal can go ahead, Lloyds must seek the consent of investment clients affected.
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