Lloyds Banking Group takes full ownership of Schroders Personal Wealth

Thu, 09th Oct 2025 10:36

(Alliance News) - Lloyds Banking Group PLC on Thursday announced the full acquisition of Schroders Personal Wealth, the wealth management and advice business previously operated as a joint venture with Schroders Group.

The Edinburgh-based lender said it bought the remaining 49.9% of share capital from Schroders in exchange for its 19.1% stake in Cazenove Capital. The transaction involved no cash consideration.

Lloyds said SPW, the joint venture launched in 2019, will be rebranded as Lloyds Wealth.

The acquired business supports around GBP17 billion in assets under administration, on behalf of 60,000 clients, and delivered operating profit of GBP45 million in the first half of 2025.

The FTSE 100-listing said the deal "accelerates delivery of the group's wealth strategy" to deepen relationships in a high value segment.

Full ownership will allow Lloyds to more effectively manage the existing business, it added.

Going forward, Lloyds said SPW will be available to more than 3 million "mass affluent" banking customers across Lloyds, Halifax and Bank of Scotland as well as Scottish Widows and new to bank customers.

After this transaction, Lloyds will continue to partner with Cazenove Capital to offer services to its high net worth customers.

The acquisition is not expected to have a material financial impact on the group, or to impact full year guidance, with the exception that, Lloyds now expect operating costs to modestly exceed the guidance of GBP9.7 billion in 2025.

The capital impact is immaterial, Lloyds added.

Shares in Lloyds Banking Group were down 3.3% at 83.50 pence each in London on Thursday morning.

The bank had earlier on Thursday warned an additional provision is likely to be required, which may be "material", in relation to the redress scheme for motor finance mis-selling.

In a statement, Lloyds said it continues to consider the impact and implications of the recently published FCA consultation paper.

While uncertainties remain, the bank said that, based on its initial analysis and the characteristics of the proposed scheme, an additional provision is likely to be required which may be "material".

This remains subject to ongoing analysis and review of the proposals, Lloyds added.

On Tuesday, the FCA, the UK's finance regulator, said car finance mis-selling will cost providers around GBP8.2 billion, with an additional GBP2.8 billion of administrative costs, taking the total to GBP11 billion.

The UK's financial regulator had previously estimated that the total cost of compensation could range from GBP9 billion to GBP18 billion.

Schroders was up 0.4% at 394.20p in London on Thursday.

By Jeremy Cutler, Alliance News reporter

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