London: British banking major Lloyds Banking Group plans a foray into investment banking and brokerage business, says a media report.
“Lloyds Banking Group is secretly working on plans to expand further into investment banking ... The bank has been quietly building a presence in equity capital markets for several months,” the UK newspaper ‘Sunday Time’ said.
According to the ‘Sunday Times’, the bank has held talks with a number of stock broking firms for exploring possibility of setting up a joint venture.
“The move would let Lloyds cash in on equity market fund raising by its corporate clients,” it said.
The tax-payer backed bank has reportedly poached a handful of executives from rival brokers on large guaranteed bonuses, in a recruitment drive led by Andrew Geczy, head of wholesale markets.
“Lloyds has now decided to set up a joint venture with a stockbroker rather than attempt to hire more bankers on large bonuses,” the newspaper said.
Banks, including JP Morgan Cazenove and HSBC, earned hundreds of millions of pounds in fees last year by underwriting share issues for British companies, many of which were Lloyds clients, it said.