Lloyds chews over possible joint venture with independent broker

LLOYDS Banking Group is mulling over the possibility of a tie-up with one of the City’s independent brokers, in order to beef up its equity capital markets (ECM) capabilities.

The bank previously hired key executives from the broking sector to expand its ECM desk, which has only a tiny share of the overall market.

Lloyds is now thought to be looking at alternatives, including setting up a joint venture with a broker in order to tap into the lucrative equity markets.

The bank is unlikely to seek a tie-up with an “owned” broker such as RBS Hoare Govett, or with small players such as Arbuthnot or Altium.

That leaves the larger independent brokers such as Numis, Evolution and Collins Stewart, though formal talks have not taken place and no deal is imminent.