Lloyds TSB

By: EconomyWatch Content   Date: 6 November 2009

About The Author

EconomyWatch Content

Follow The Money

EconomyWatch, Content Team

 

  • Dot Div
  •      

Lloyds TSB is the largest retail bank in the UK and has offices in several countries across the world. The company was renamed as Lloyds Banking Group in January 2009,   following the acquisition of HBOS Plc.

 

Lloyds TSB owns several brand names including:

  • Halifax
  • Lloyds TSB
  • Bank of Scotland

 

The company has recently announced plans to come out with a £13.5 billion rights offer. The purpose is to meet its short and long term capital requirments besides agreeing to sell some of its businesses.

Conversion of Lloyds TSB to Lloyds Banking Group

Lloyds TSB was formed in 1995, following the merger of the Lloyds Bank and the Trustee Savings Bank. Over the years, Lloyds TSB has emerged as a leading player in the UK as well as Scotland.

 

The company operates in England and Wales under different names and its other operations included:

  • Cheltenham and Gloucester (mortgage company)
  • Scottish Widows (life insurance company)
  • Black Horse (finance house)
  • Lloyds Development Capital (private equity investments brand)

 

Lloyds TSB has also restructured its operations through the sale of some entities while purchasing several others. In recent years, the major acquisitions made by Lloyd TSB include:

  • Scottish Widows (mutual life assurance company)
  • Chartered Trust from Standard Chartered Bank to provide motor, retail and personal finance under the trading name Black Horse

 

The company has also sold off its operations in:

  • Argentina
  • Colombia
  • New Zealand besides the Abbey Life Insurance division

 

With the completion of the acquisition of HBOS plc in January 2009, Lloyds TSB was renamed as the Lloyds Banking Group. The company has one of the largest distribution networks in the UK.

 

Lloyds TSB and Capital Restructuring

About 43% of the Lloyds Banking Group or Lloyds TSB is owned by the government. Recently, it announced a capital restructuring plan in addition to agreeing to sell off some of its businesses. This is in compliance with the government norms calling for greater   competition in UK’s banking segment.

 

As per plans announced by the Lloyds Banking Group, the company will reduce its mortgage business by 19% and its current account business by 4.6% through the sell off of the Lloyd TSB brand, Lloyd TSB Scotland business, the business that is run under the Cheltenham & Gloucester brand, and its online business, Intelligent Finance.

 

 


  • Dot Div
  •      

Most Popular in UK Banks

Related Links
blog comments powered by Disqus