LONDON (Reuters) - Part-nationalised Lloyds Banking Group <LLOY.L> has hired Deutsche Bank to advise it on the possible sale of Scottish Widows Investment Partnership (SWIP), its asset management unit, a source familiar with the matter said.
A sale of the business is one of a number of options being considered as the bank looks to strengthen its balance sheet in response to toughening regulatory demands, the source said.
A formal sale process has not yet begun, however, and the whole Scottish Widows insurance business is not up for sale, the source said.
SWIP provides asset management services to both internal and external clients. SWIP had 141.7 billion pounds under management at the end of 2012.
The Bank of England said in March that UK banks must raise 25 billion pounds ($38 billion) of extra capital by the end of the year to absorb any future losses on loans.
Lloyds and Deutsche Bank declined to comment on the matter.
(Reporting by Matt Scuffham, editing by Sinead Cruise)