Lloyds weighs bid for Aldermore as South Africa's FirstRand seeks exit, Sky News reports

Source: Reuters.

Here are some details:

• Lloyds is examining Aldermore for its small-business lending and project-finance capabilities, but is not certain to proceed with a formal bid, Sky News said, citing sources.
• FirstRand said in April it had planned to exit from its British challenger bank, Aldermore, blaming a costly and "deeply flawed" UK motor finance redress scheme, as it raised provisions for mis-sold motor loans to £750m ($994m).
• Sky News reported any buyer will likely require an indemnity against further compensation liabilities amid ongoing uncertainty about the UK Financial Conduct Authority's redress programme timing and scope.
• Shawbrook is also examining a combination with Aldermore, according to Sky News.
• Reuters could not immediately verify the report.
• Lloyds and Aldermore could not be immediately reached for comment.

($1 = £0.7545)