(RTTNews) – Lloyds Banking Group (LLOY.L, LYG), on Thursday announced plans to acquire Embark Group, an investment and retirement platform company. The acquisition is expected to be completed in the fourth quarter of 2021, subject to regulatory approvals.
Embark strengthens the Group’s capabilities to address the attractive mass market and the self-managed wealth segment, thus completing its wealth proposition.
Getting on board would also allow the Group to restructure its retirement and retirement offerings, by offering a market-leading platform for intermediaries and by considerably strengthening its offer in retirement, a significant growth market.
Lloyds Banking has further indicated that it is aiming for a position in the top three in the direct-to-consumer self-advice and robo-advice business in the medium term. The Group is also targeting a position among the top three in the individual pensions and retirement withdrawals market by 2025. As a result, the Group has raised its 2021 Strategic Review net new money target by 25 billion. pounds sterling to around £ 40 billion by 2023, to reflect its increased growth potential.
The transaction is funded in cash by Lloyds’ strong capital position. In half-year 2021, the Group posted a CET1 ratio of 16.7%, significantly higher than the current target of around 12.5%, to which is added a management buffer of around 1%.
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