Lloyds Banking Group PLC eyes bigger JV push into wealth management

PLC () is eyeing further expansion into the private client sector as a source of better earnings as part of its strategic review, according to reports.  

Having formed a joint venture with () in 2018 and is still holding onto its Scottish Widows insurance arm, Britain’s biggest high street lender plans to make further forays into the wealth management space as it faces up to potentially many years ahead with rock bottom interest rates.

READ: Lloyds Banking profit plummets in anticipation of coronavirus loan hit

The bank will unveil this wealth push as part of a strategic review unveiled later this summer, the FT reported.

The Personal Wealth JV is reported as part of Lloyds’ Insurance and Wealth business, which supports over 10mln customers with assets under administration of £170bn. 

Last year the said it was continuing to invest “significantly” in the development of this business, “with the aims of capturing considerable opportunities in pensions and financial planning, offering customers a single home for their banking and insurance needs and driving growth across intermediary and relationship channels through a strong distribution model”.

This division contributed £1.1bn of underlying earnings last year, around 15% of the group total.

Personal Wealth said earlier in June that its chief executive Peter Hetherington was stepping down after less than a year in the role.

The JV said last year it was aiming to undercut the fees of rivals such as St James’s Place and .