Lloyds Banking Group

By: EconomyWatch Content   Date: 5 November 2009

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UK-based Lloyds Banking Group was formed in 2009 through the acquisition of HBOS by Lloyds TSB. With operations spanning several countries across the globe, Lloyds Banking Group currently offers retail banking, wholesale insurance, wealth and international services. The company has decided to come out with a £13.5 billion rights offer to avoid participation in the UK government’s asset protection scheme.

Lloyds Banking Group: Formation

Formerly known as Lloyds TSB Group Plc, Lloyds Banking Group is a leading retail bank in the UK with operations in the US, Europe, the Middle East and Asia.

 

Lloyds TSB was formed in 1995 with the merger of the one of the oldest banks in the UK, Lloyds Bank and Trustee Savings Bank, and marked the beginning of a major consolidation phase in the UK banking segment. The acqusition of HBOS was initiated by Lloyds TSB in 2008, following a sharp drop in the former bank’s share price. Following the completion of the HBOS acqusition in 2009, the company’s name was changed to Lloyds Banking Group. The company’s operations are currently carried out under several brands that include the Bank of Scotland, Halifax and Lloyds TSB.

 

Lloyds Banking Group:

Lloyds Banking Group is a leading player in the UK retail banking segment and has a vast branch network. The company also has operations in several other nations across the world and is one of the first mainstream banks to launch a sharia-compliant business account. The bank was chosen in July 2007 by Euromoney as the winner of the excellence award. The company has also won the Bank of the Year award for five consecutive years.

 

In a bid to avoid participation in the UK government’s asset protection scheme, the Lloyds Banking Group has announced plans to launch a £13.5 billion rights issue, the biggest ever in the UK. As part of its restructuring plans, Lloyds Banking has also decided to sell off 600 of its branches, including 164 Cheltenham and Gloucester branches, all 125 Lloyds TSB branches in Scotland, and 280 Lloyds TSB branches across England and Wales. The company’s TSB brand name and its online business Intelligent Finance will also be sold off in the next four years to satisfy EU state aid rules. The disposal of branches will result in a reduction in the company’s mortage business.

 

 


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