Lloyds to unveil restructuring plans next month
Part-nationalised bank to issue strategic review on June 30
By CFOWorld.co.uk | CFO UK | Published 12:21, 25 May 11
Lloyds is to unveil its plan for selling off assets and restructuring its business next month amid close scrutiny of its intentions from the Independent Commission on Banking (ICB).
The part-nationalised bank is obliged by regulatory insistence to sell 600 retail branches but might yet be required to dispose of more assets if the ICB turns a recently-made suggestion into a full reform recommendation.
Lloyds’ new chief executive Antonio Horta-Osario has been working on what will likely be a wide-ranging review since he took up his post in March and is now set to outline his strategic intentions at the end of next month.
Lloyds has said the ICB’s recommendation of further sell offs could delay or complicate its existing programme, although the ICB, focussing on issues of competitiveness within the UK banking sector, is not due to make its final recommendations until September.
The sale of the 600 Lloyds branches, dubbed ‘Project Verde,’ could interest Virgin Money, the retailer Tesco's finance arm, the new bank venture NBNK and overseas lenders such as National Australia Bank, analysts say.
Lloyds was saddled with billions of pounds of losses after it bought troubled rival HBOS at the height of the credit crisis of 2008, a deal brokered by the Labour government of the time.
The government owns around 40.6 percent of Lloyds after its bailout of the bank during the financial crisis.
Meanwhile in Ireland, the recently nationalised Allied Irish Banks (AIB) is getting under way with wholesale changes to its operations, with a non-core unit be set up to dispose of unwanted assets. AIB’s overhaul included the appointment of Paul Stanley as interim CFO.
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