On October 9, 2025, Lloyds Banking Group announced it will buy Schroders’ 49.9% stake in their UK wealth joint venture.
The Lloyds Wealth expansion aims to grow its mass affluent market share.
Swap Deal Structure
Lloyds will exchange its 19.1% stake in Cazenove Capital, a high-net-worth business, for Schroders’ share. No cash is involved, streamlining the Lloyds Wealth expansion strategy.
Rebranding to Lloyds Wealth
The joint venture, launched in 2019 with £17 billion ($22.75 billion) in assets, will rebrand as Lloyds Wealth.
This move strengthens the Lloyds Wealth expansion in the UK market.
Targeting Mass Affluent
Lloyds, alongside HSBC and Barclays, seeks higher fee income from the mass affluent—clients with £75,000 to £250,000 in deposits.
The Lloyds Wealth expansion taps this underserved segment.
Shift in Banking Focus
Major banks historically ignored the mass affluent, favoring ultra-wealthy clients.
Independent advisors like St James’s Place dominated this space, but Lloyds Wealth expansion changes the landscape.
Unified Wealth Offering
Chira Barua, Lloyds’ CEO of Insurance, Pensions & Investments, emphasized growth. “This unifies advice, technology, and products,” he said, driving the Lloyds Wealth expansion for better customer service.
Schroders’ Ongoing Role
Schroders secured a multi-year deal to manage assets for Lloyds Wealth and Scottish Widows. This partnership supports the Lloyds Wealth expansion while maintaining collaboration.
Market Implications
The deal reflects UK banks’ pivot to wealth management. By focusing on the mass affluent, the Lloyds Wealth expansion positions the bank for sustained growth in 2025.
