The Sunday Times said the bank’s majority holding in the wealth manager could be put on the market by the end of the year.
The group is believed to be looking to raise about £1bn through the sale, while 60% of SJP’s market value at close of play on Friday 2 November would price at around £1.2bn.
Antonio Lorenzo, strategy director at Lloyds, is reported to be leading the sale, which comes as the bank goes under renewed scrutiny from the Financial Services Authority about its capital position.
The newspaper claims the disposal plan was ‘not imminent’ but ‘under active consideration’.
Lloyds acquired the 60% stake of St James’s Place as part of its merger with HBOS in 2009. Originally Halifax Group acquired the majority holding of the firm in 2000 and then merged with Bank of Scotland in 2001 to create HBOS.
One reason for Lloyds’ potential sell off of SJP is its differing views from the regulator on its plans to start paying dividends for the first time since the financial crisis. Raising money by selling the wealth manager could alleviate the FSA’s concerns about the group’s capital position.
Last week, St James’s Place posted a strong set of financial results showing funds under management grew by 15% over the first nine months of the year while new business growth hit 6%.
