Lloyds furthers stockbroking ambitions

by Gill Montia

Story link: Lloyds furthers stockbroking ambitions

Lloyds Banking Group is working away on covert plans to extend its investment banking activities, The Sunday Times has reported.

According to the newspaper, the bank has been in discussion with a number of stockbroking firms and is close to finalising a joint venture.

Last autumn, the group was reported to be in talks with stockbroker, Execution, in which it holds a small stake, and was also rumoured to be focusing attention on the fee-earning potential of rights issues, as the economy recovers.

Lloyds recently issued a trading update in which it predicted a return to profit in 2010, having posted an operating loss of £6.3 billion for 2009.

The 41% taxpayer-owned bank reported strong trading in the first 10 weeks of the year and confirmed that provisions for impairments were at lower levels than anticipated, in both its retail and corporate areas of business.