Barnetts, Hoares, Hanbury & Lloyds was formed in 1864 through the merger of Barnett, Hoare & Co. with Hanbury, Lloyds & Co. Both firms were based in Lombard Street in the City of London.
From the outset, Barnetts, Hoares, Hanbury and Lloyd’s customer base was made up largely of merchants who traded in the Port and City of London. However, a significant proportion of business also came from the wealthy aristocracy who spent the ‘season’ in London. For some of these customers, loans were advanced purely on the security of their art collection.
During the first half of the 19th century the bank incurred heavy losses as a result of a downturn in the sugar trade, the financing of which it had been heavily involved in. However, it was able to survive largely due to its more successful involvement in the cotton trade – this subsequently became its primary focus.
In 1884 Lloyds took over Barnetts, Hoares, Hanbury & Lloyd in a bid to gain a foothold in London. One of the bank's partners, Edward Broadie Hoare, joined the Lloyds board of directors. He eventually went on to become deputy chairman. Lloyds also inherited its now famous black horse symbol from the firm.