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Lloyds Banking Group plc
Formerly
  • TSB Group Public Limited Company (1985–1995)
  • Lloyds TSB Group plc (1995–2009)
Public limited company
Traded as
Industry
Founded 16 January 2009; 16 years ago (2009-01-16)
Headquarters
  • London, England, UK
    (operational headquarters)
  • Edinburgh, Scotland, UK
    (registered office)
Area served
United Kingdom
Key people
  • Robin Budenberg (chairman)
  • Charlie Nunn (chief executive)
Products
Revenue Increase £35.405 billion (2023)
Operating income
Increase £7.503 billion (2023)
Increase £5.518 billion (2023)
Total assets Increase £881.453 billion (2023)
Total equity Increase £47.365 billion (2023)
Number of employees
63,000 (2024)
Divisions
  • Consumer Lending and Consumer Relationships
  • Business & Commercial Banking
  • Corporate & Institutional Banking
  • Insurance, Pensions & Investments
Subsidiaries

Lloyds Banking Group plc is a very large British company that offers many money services. It was created in 2009 when Lloyds TSB bought another big bank called HBOS. It's one of the UK's biggest financial groups, helping 30 million customers. About 65,000 people work there.

Lloyds Bank itself started way back in 1765. But the whole group's history goes even further, over 320 years! That's because the Bank of Scotland, which is part of the group, began in 1695.

The main office for Lloyds Banking Group is in London, England. Its official registered office is in Edinburgh, Scotland. The group also has offices in other UK cities like Birmingham and Glasgow. They even have offices in the US and Europe, with their main European Union office in Berlin, Germany.

The company uses several well-known names for its different services. These include Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows. The former Chief Executive, António Horta-Osório, said they keep these different names because different customers like different brands.

Lloyds Banking Group's shares are traded on the London Stock Exchange (LSE). It is also one of the top 100 companies listed on the LSE, part of the FTSE 100 Index. Its shares are also traded in the US on the New York Stock Exchange (NYSE).

How Lloyds Banking Group Started

Early Beginnings

Lloyds Bank is one of the oldest banks in the UK. It began in 1765 in Birmingham. Two people, John Taylor (a button maker) and Sampson Lloyd II (who dealt with iron), started it. Over many years, Lloyds grew by joining with other banks. It became one of the four biggest banks in the UK.

The Bank of Scotland is even older, starting in the 1600s. It's the second-oldest bank in the UK that is still running today, after the Bank of England. In 2001, Halifax Building Society, which started in 1853, joined with the Bank of Scotland. This was a huge deal worth £10.8 billion.

The Trustee Savings Bank (TSB) has roots going back to 1810. That's when Henry Duncan opened the first savings bank in Scotland. TSB was officially created in 1985. This happened when all the smaller savings banks in England, Wales, and Scotland joined together.

Lloyds and TSB Join Forces

Lloydsleeds
Park Row Leeds branch of Lloyds Bank, with a sculpture of the black horse (called Cancara) in the foreground

In 1995, Lloyds Bank and TSB Group joined together. They formed a new company called Lloyds TSB Group plc.

In 2000, the group bought Scottish Widows. This company helps people with life insurance and pensions. The deal was worth £7 billion. This made Lloyds TSB Group the second-largest provider of life insurance and pensions in the UK. Later that year, they also bought Chartered Trust. This company helps people with car loans and other personal finance.

Lloyds TSB kept growing. In 2001, they tried to buy another bank called Abbey National, but the government stopped the deal. They also sold some of their businesses in other countries. For example, they sold their banking operations in New Zealand in 2003. They also sold their businesses in Argentina and Colombia in 2004.

In 2005, Lloyds TSB sold its credit card business, Goldfish. They sold it to Morgan Stanley for £175 million. In 2007, they sold their Abbey Life insurance part to Deutsche Bank for £977 million.

Buying HBOS

Bank of Scotland head office, Edinburgh
Head office of the Bank of Scotland at The Mound, Edinburgh

In September 2008, there were talks about Lloyds TSB buying HBOS. This happened because HBOS's share price was falling very quickly. On September 18, 2008, they announced that the deal would go ahead. This would create a huge banking company.

Lloyds TSB shareholders agreed to the deal in November 2008. HBOS shareholders also strongly approved it in December. When the takeover was finished on January 19, 2009, Lloyds TSB Group changed its name to Lloyds Banking Group.

After the takeover, some people questioned if Lloyds had checked HBOS enough before buying it. The CEO, Eric Daniels, said they always want to check more. But there are rules about how much they can check before a deal is final. Losses from HBOS were higher than first thought. This was because property prices fell a lot in late 2008 and early 2009.

Government Help for Banks

Rather rebranded bank
The Aylesbury branch of Lloyds Bank, formerly the Bucks and Oxon Union Bank

In October 2008, the UK government stepped in to help major banks. Prime Minister Gordon Brown announced a plan to invest £37 billion into banks like Lloyds TSB and HBOS. This was to stop the financial system from collapsing.

After the government's help and Lloyds buying HBOS, the UK government owned 43.4% of Lloyds Banking Group.

In February 2009, the government asked banks to go through "stress tests." These tests checked if banks could survive a very bad economic situation. The tests imagined things like a big drop in the UK economy and house prices.

The tests showed that Lloyds would need more money if such a bad situation happened. So, in March 2009, Lloyds made a deal with the UK government. Lloyds repaid some special shares the government held. This meant Lloyds didn't have to pay £480 million in yearly interest to the government. It also meant they could start paying dividends (money to shareholders) again when they made enough profit.

Recent History

Lloyds Bank Building
King Street Manchester branch of Lloyds Bank, designed by Charles Heathcote in 1915.

By mid-2009, Lloyds decided not to join a government plan to protect banks from future losses. Instead, Lloyds raised money from its existing shareholders. The government, as a shareholder, also took part. This kept the government's ownership at 43.4%.

In December 2009, the government said that the expected losses from helping banks had gone down a lot. This was partly because of changes to how the government helped banks. In February 2010, the government's share in Lloyds went down slightly to about 41%.

Over the years, Lloyds Banking Group continued to sell off parts of its business. In 2013, they sold their Spanish banking business to Banco de Sabadell.

The UK government started selling its shares in Lloyds Banking Group in 2013. They sold shares in several steps. By March 2017, the British government had sold all of its remaining shares in Lloyds Banking Group.

Selling Off TSB

Lloyds Bank, Five Ways, Birmingham
The Edgbaston branch of Lloyds Bank at Five Ways, Birmingham, designed by P. B. Chatwin in 1908.

Because the UK government had bought a large part of Lloyds Banking Group, it was seen as government help. Under European rules, the group had to sell off some of its business to create more competition.

This plan was called "Verde." It meant that 632 branches of Lloyds TSB would be separated. These branches, along with their customers and staff, would become a new bank. This new bank would operate under the TSB brand as TSB Bank plc. The remaining Lloyds TSB branches would then be renamed Lloyds Bank.

In 2012, Lloyds Banking Group planned to sell these TSB branches to The Co-operative Bank. However, in 2013, The Co-operative Bank decided not to buy them. This was due to economic problems and new banking rules.

So, Lloyds Banking Group decided to sell TSB Bank through an initial public offering (IPO) in 2014. This means they sold shares of TSB Bank to the public. TSB Bank officially started operating on September 9, 2013. In March 2015, a Spanish bank called Banco Sabadell agreed to buy TSB. The deal was completed in July 2015. This meant Lloyds no longer owned any part of TSB.

How the Company is Organized

The business is split into five main parts:

  • Private equity (investing in companies)
  • Consumer lending and consumer relationships (loans and services for everyday people)
  • Business and commercial banking (services for businesses)
  • Corporate and institutional banking (services for very large companies and organizations)
  • Insurance, pensions, and investments (helping people plan for the future)

Main Leaders

This section lists the people who have been in charge since Lloyds Banking Group was formed in 2009.

Current Leaders

  • Chairman: Robin Budenberg (since January 2021)
  • Chief Executive: Charlie Nunn (since August 2021)

Past Chairmen

  1. Sir Victor Blank (2009)
  2. Sir Winfried Bischoff (2009–2014)
  3. Lord Blackwell (2014–2020)

Past Chief Executives

  1. Eric Daniels (2009–2011)
  2. Sir António Horta-Osório (2011–2021)

Helping the Community

Lloyds Banking Group actively supports disability rights. They are a top member of the Employers' Forum on Disability. In 2010, they helped create and now support the RADAR Radiate network. This network helps people with disabilities find and develop their talents.

In 2011, Lloyds Banking Group started the Lloyds Scholars Programme. This program helps UK university students from less wealthy backgrounds. It works with nine top UK universities. The program gives students £1000 each year to help with living costs. It also provides a mentor from Lloyds and two paid internships. Students must also do 100 hours of volunteering in their local community each year.

Awards and Recognition

Lloyds Bank on High Street Oxford
Carfax Oxford branch of Lloyds Bank on High Street, designed by Stephen Salter in 1901.

Lloyds TSB has won many awards over the years.

  • In July 2007, Euromoney named Lloyds TSB a winner of its Awards for Excellence.
  • In June 2008, Lloyds TSB Group came first in a survey by Race for Opportunity.
  • In May 2009, Lloyds TSB Corporate Markets was named 'Bank of the Year' for the fifth year in a row.

Many of Lloyds' brands have also won awards:

  • In October 2009, Halifax won Best Savings Account Provider. Halifax Share Dealing was also named Best Share Dealing Service.
  • Halifax also won Best First Time Mortgage Provider in the Consumer Money Awards.
  • Cheltenham & Gloucester won Best Remortgage Provider.
  • Lloyds TSB won Best Current Account Provider and Best Customer Service Provider.
  • Halifax won Best ISA Provider and Best High Street Savings Provider.
  • In November 2009, Halifax won Best Overall Mortgage Lender for the eighth year in a row.
  • Birmingham Midshires was named Best Specialist Mortgage Lender.
  • Lloyds TSB won Best Overseas Mortgage Lender.
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