Lloyds Banking Group

Overview

Lloyds Banking Group plc

area served
former name	TSB Group Public Limited Company (19851995) Lloyds TSB Group plc (19952009)‡R1R‡
type	Public
traded as	lse: LLOY nyse: LYG FTSE 100 component
predecessor	Lloyds line: Lloyds TSB Group Lloyds Bank (original) Trustee Savings Bank Cheltenham & Gloucester Bank of Scotland line: HBOS Governor and Company of the Bank of Scotland Halifax plc Birmingham Midshires
foundation	January 16, 2009‡R2R‡
location	London, England, UK (operational headquarters) Edinburgh, Scotland, UK (registered office)

key people	Robin Budenberg (chairman) Charlie Nunn (chief executive)

industry	Banking Financial services

products	Asset management Retail banking Commercial banking Investment banking Private banking General insurance Life assurance Pensions Investment management Wealth Management

revenue	£19.422 billion (2025)‡R3R‡

operating income	£6.661 billion (2025)‡R3R‡

net income	£4.757 billion (2025)‡R3R‡

assets	£944.072 billion (2025)‡R3R‡

equity	£47.867 billion (2025)‡R3R‡

num employees	65,000 (2026)‡R4R‡

divisions	Consumer Lending and Consumer Relationships Business & Commercial Banking Corporate & Institutional Banking Insurance, Pensions & Investments

subsid	Lloyds Bank Bank of Scotland Scottish Widows Lloyds Development Capital Agricultural Mortgage Corporation Black Horse Lex Autolease

Lloyds Banking Group plc is a British financial institution formed through the acquisition of HBOS by Lloyds TSB in 2009. It is one of the UK's largest financial services organisations, with 30 million customers and 65,000 employees.[5] Lloyds Bank was founded in 1765 but the wider Group's heritage extends over 320 years, dating back to the founding of the Bank of Scotland by the Parliament of Scotland in 1695.[6]

The Group's headquarters are located at 33 Old Broad Street in the City of London, while its registered office is on The Mound in Edinburgh. It also operates office sites in Birmingham, Bristol, West Yorkshire and Glasgow.[7] The Group also has overseas operations in the US and Europe. Its headquarters for business in the European Union is in Berlin, Germany.[8]

The business operates under a number of distinct brands, including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Former Chief Executive António Horta-Osório told The Banker, "We will keep the different brands because the customers are very different in terms of attitude".[9]

Lloyds Banking Group is listed on the London Stock Exchange (LSE) and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately GB£51.4 billion as of 24 October 2025—the 15th-largest of any LSE listed company[10]—and has a secondary listing on the New York Stock Exchange in the form of American depositary receipts. It is the 11th largest bank in Europe by total assets as of 2024.[11]

History

Origins

Lloyds Bank is one of the oldest banks in the UK, tracing its establishment to Taylors and Lloyds founded in 1765 in Birmingham by button maker John Taylor and iron producer and dealer Sampson Lloyd II.[12] Through a series of mergers, Lloyds became one of the Big Four banks in the UK.[13]

Bank of Scotland, which originated in the 17th century, is the second-oldest surviving UK bank after the Bank of England. In 2001, a wave of consolidations in the UK banking market led the former Halifax Building Society—which originated in 1853—to agree to a £10.8 billion merger with Bank of Scotland.[14]

Trustee Savings Bank

Divisions and subsidiaries

The business is divided into five divisions:[77][78]

Private equity
Consumer lending and consumer relationships
Business & commercial banking
Corporate & institutional banking
Insurance, pensions and investments

Senior leadership

Refers to chairmen and chief executives since 2009, when Lloyds Banking Group was formed.

Current leadership

Chairman: Sir Robin Budenberg (since January 2021)[79]
Chief Executive: Charlie Nunn (since August 2021)[80]

List of former chairmen

1) Sir Victor Blank (2009)[81]

Sponsorships and responsible business programmes

Lloyds Banking Group is an active supporter of disability rights and best practice; it is a Gold member of the Employers' Forum on Disability. In 2010, the group helped create and currently sponsors the Royal Association for Disability Rights (RADAR) Radiate network, which aims to support and develop a talent pool of people with disabilities and health conditions and to potentially act as a source of thinking for organisations on how 'disabled talent' is best spotted and developed.[85]

In 2011, Lloyds Banking Group established the Lloyds Scholars Programme, a social mobility programme aimed at UK students, in partnership with nine leading UK universities.[86] The Scholars Programme takes 15 students per university per year and consists of a £1000 per annum scholarship paid directly to the student to help with living costs, a Lloyds Banking Group mentor and two ten-week internships, paid at £18,000 pro rata.[87] The programme supports students throughout their university career and requires scholars to complete 100 hours of volunteering in their local community per year of their degree.[87] There are also restrictions on who can apply, which exclude medical and veterinary students, as well as anyone with a residual household income as defined by their student funding body of more than £25,000 per annum, since the programme is a social mobility initiative.

Awards and recognition

In July 2007, Euromoney announced Lloyds TSB as the winners of its Awards for Excellence.[89]

In June 2008, Lloyds TSB Group came top in the Race for Opportunity's (RfO) annual survey.[90]

In May 2009, Lloyds TSB Corporate Markets was recognised as 'Bank of the Year' for the fifth year running at the Real FD/CBI FDs' Excellence Awards.[91]

In October 2009's "What Investment" magazine awards, Halifax won Best Savings Account Provider, and Halifax Share Dealing was also named Best Share Dealing Service.[92]

In October 2009's "Consumer Money Awards," Halifax won Best First-Time Mortgage Provider. Lloyds' brands were commended in several other categories, including Cheltenham & Gloucester for Best Remortgage Provider and Best High Street Mortgage Provider; Lloyds TSB for Best Current Account Provider, Best Student Account Provider and Best Customer Service Provider; and Halifax for Best ISA Provider and Best High Street Savings Provider.

Controversies

Money laundering

A 2010 report by The Wall Street Journal described how Credit Suisse, Barclays, Lloyds Banking Group, and other banks were involved in helping the Alavi Foundation, Bank Melli, the Government of Iran, and others circumvent US laws banning financial transactions with certain states. They did this by stripping information out of wire transfers, thereby concealing the source of funds. Lloyds Banking Group settled with the US government for US$350 million. The US government's Manhattan District Attorney's Office was involved, although the case was merged with one at the federal US Department of Justice.[96]

Tax avoidance

External links

References

Lloyds Banking Group PLC overview Companies House, 1985-10-21, retrieved 2024-01-23^
Lloyds Banking Group SEC, retrieved 6 December 2020^
Annual Results 2025 Lloyds Banking Group, retrieved 29 January 2026

February to June 2009

In February 2009, after it became apparent that the recession would be deeper than originally anticipated, the FSA was instructed to "stress test" the banks against a severe economic downturn. The FSA stated that the assumptions underlying the stress test were not intended to be a forecast of what was likely to happen but to simulate a near-catastrophic economic scenario. These assumptions included:

The conclusion from this exercise was that Lloyds would need additional capital if such a scenario ever occurred. Because the wholesale funding markets were effectively closed at the time, in March 2009 Lloyds made a compromise with the UK government consisting of two elements:

A peak-to-trough fall in UK gross domestic product (GDP) of over 6%, with no growth until 2011 and returning to trend-rate growth in 2012;

A rise in UK unemployment to just over 12%;

A 50% peak-to-trough fall in UK house prices;

A 60% peak-to-trough fall in UK commercial property prices.[40]

The first element was the redemption of preference shares. The £4 billion of preference (non-voting) shares held by UKFI were repaid on 8 June 2009 following the issue of new ordinary shares—this avoided the payment of £480 million annual interest to the Treasury and allowed Lloyds to resume payment of dividends when profits allowed. These new ordinary shares were initially available to existing shareholders through an open offer at 38.43 pence that closed on 5 June 2009—87% were taken up. The remaining 13% were placed in the market on 8 June 2009 at 60 pence. This open offer and placing was underwritten by the Treasury; if none of these new ordinary shares had been bought by existing shareholders or the open market, the government—as underwriters of the deal—would have bought them, and their shareholding would have increased to a maximum of 65%. This did not happen; the government's holding remained at 43.4% and Lloyds became the first European bank to repay the government's "credit crunch" investment.[41] Following the government's 43.4% participation in June's Open Offer, the average buying price of the government's total shareholding was 122.6 pence.[42]

The government implemented an asset protection scheme. Lloyds agreed in principle to enter the government's asset protection scheme to insure it against potential future losses on previous loans—primarily on the old HBOS portfolio. The fee for this would have been paid for by the issue to the government of new 'B' (non-voting) shares, which could have increased the government holding to a maximum of c. 62%—or higher if the government had bought all the ordinary shares issued to redeem the preference shares.[43]

June 2009 to present

Lloyds' impairments peaked in the first half of 2009; by mid-2009 the asset protection scheme increasingly looked like a poor deal for Lloyds. Following negotiations, the government confirmed on 3 November 2009 that Lloyds would not enter the scheme—although RBS still would. Instead, Lloyds launched a rights issue to raise capital from existing shareholders; as an existing 43.4% shareholder, the government chose to take part in this and thus maintained its shareholding at 43.4%.[46][47] Following this, the National Audit Office calculated the government's average buying price for its entire stake in Lloyds to be about 74 pence.[48]

It was announced in the government's pre-budget report on 9 December 2009 that the forecast for the total loss to taxpayers for all the bank bailouts had been reduced from £50 billion to £10 billion—in part because of the restructuring of the government's asset protection scheme.[49] The final part of the December 2009 capital raise involved issuing new shares to debt holders in February 2010. This diluted existing shareholders—including the UK Government, whose shareholding was reduced from 43.4% to around 41%.[50] The group sold its 70% stake in insurance company Esure to Esure Group Holdings on 11 February 2010. The share was valued at around £185 million.[51]

On 4 November 2012, it was reported that Lloyds was considering selling its 60% stake in St James's Place Wealth Management to raise around £1 billion.[52] In April 2013, Lloyds sold its loss-making Spanish retail operation—originally Banco Halifax Hispania—and the local investment management business in Spain to Banco de Sabadell. Lloyds will receive a 1.8% stake in Sabadell worth about €84 million and an additional sum of up to €20 million over the next five years.[53] In September 2013, it was reported that the UK government was planning to sell up to a quarter of its shares in Lloyds Banking Group.[54] The government sold 6% of its shares on 17 September 2013 at 75p, raising £3.2 billion and reducing its stake to 32.7%.[55] The UK government then sold a further 7.8% on 26 March 2014 at 75.5p, raising a further £4.2bn and reducing its stake to 24.9%.[56] A trading plan of incremental sales during 2015 reduced the publicly owned stake to below 10% by the end of October.[57]

In February 2025, Lloyds Banking Group nearly tripled the amount it is setting aside to cover the car finance mis-selling scandal to £1.2bn.[60] Lloyds is one of the lenders who could potentially be forced to compensate consumers after a court ruling in October 2024 determined that paying a “secret” commission to car dealers who had arranged the loans without disclosing the sum and terms of that commission to borrowers was unlawful.[61]

In early 2025, Lloyds Banking Group secured a £99 million contract to provide banking services for HM Revenue & Customs (HMRC), replacing Barclays after a decade.[62]

As of 2025, the bank provided cross-brand service from all branches, allowing customers of Lloyds to use Halifax and Bank of Scotland branches and vice versa.[63]

Lloyds Banking Group

History

Origins

Divisions and subsidiaries

Senior leadership

Current leadership

List of former chairmen

Sponsorships and responsible business programmes

Awards and recognition

Controversies

Money laundering

Tax avoidance

External links

References

Lloyds/TSB merger

Acquisition of HBOS

Lloyds/TSB merger

Acquisition of HBOS

October 2008 to January 2009

February to June 2009

June 2009 to present

Divestment

List of former chief executives

Complaints via the Financial Ombudsman Service

Islamic Account

HBOS Reading fraud

Overdraft fees

Motor finance litigation

Lloyds Business Support Unit