Firms circle for key Lloyds talent

While Scotland-based employees in the corporate and retail divisions of Lloyds Banking Group are still anxiously awaiting news of yet more potential job cuts, those in other functions are being lured away by competing firms north of the border.

Edinburgh-based wealth manager Rensburg Sheppards has poached a team of eight portfolio managers away from Bank of Scotland private banking.

In a rather bizarre state of affairs, Lloyds is apparently considering suing Rensburg Sheppards if it has breached confidentiality agreements in poaching the team. Sources told the Scotsman that an angry letter had been sent, accusing Rensburg of being "naughty boys".

The whole incident raises the question of whether Lloyds staff are rather keen to jump ship.

Scottish Widows Investment Partnership, the group's asset management function, has also lost a number of senior investment staff to local rivals and is currently in the process of recruiting replacements.

Lloyds is still in the midst of a 400m cost-cutting programme and, looks likely to continue downsizing in the short-term in spite of moves to exit the government's asset protection scheme.

However, Scottish financial services headhunters tell us that Lloyds staff remain "open to offers, but are definitely not heading for the door in large numbers".

After 625 corporate banking redundancies were announced earlier this year, one senior ex-HBOS corporate banker says most Lloyds corporate bankers are sitting tight. "The feeling is that we're the survivors and it's better the devil you know," he says.

This may be partly due to a lack of opportunities. HSBC and Tesco Personal Finance are planning to expand their Scottish corporate banking businesses, but opportunities are thin on the ground.

Sadly, Lloyds retail bankers may soon be looking for jobs too - Lloyds may hive off 200 branches in Scotland as part of its agreement with the European Commission.