The business, that made a loss of £50m in 2012, is to be sold for an expected £100m, with £65m upfront, the part-nationalised bank said.

It currently has assets under management of £7.2bn, with a balance sheet of £729m.

UBP will acquire the group’s Geneva-based private bank, as well as branches in Zurich, Monaco, Gibraltar and Montevideo.

Senior client-facing teams are expected to transfer to the Swiss bank.

Lloyds is also “exploring potential business opportunities with UBP including possible client and product referrals.”

The deal is part of an attempt to “reduce and simplify our international presence,” according to a statement, by focusing on the UK, Channel Islands and UK expat marketplaces.

The majority of the transfer is expected to be completed in the second half of 2013, and the remainder by the first quarter of 2014.

In a connected development Lloyds will also close its private banking office in Dubai, but will retain one in Miami.