Lloyds Banking Group plc is the premier UK financial institution formed through the acquisition of HBOS by Lloyds TSB in 2009. The history of the Group comes from the establishment in 1695 by the Scottish Parliament of the Bank of Scotland, which is the second oldest bank in the UK. Group Headquarters is located at 25 Gresham Street in the City of London and its registered office is on The Mound in Edinburgh. The activities of Lloyds Banking Group are organized into: Retail Banking (including Mortgages and Sole Traders); Commercial; Life, Retirement & amp; Insurance; and Wealth & amp; International. Lloyds' has extensive overseas operations in the US, Europe, Middle East and Asia.
After the takeover, the Group stops using the name HBOS publicly. Halifax brands, products and prices are discontinued in Scotland until they are rebuilt in 2013. Halifax and Lloyds Bank brands are used in England and Wales and Bank of Scotland brands are used in Scotland, each offering different products and prices. CEO of Lloyds Banking Group AntÃÆ'³nio Horta-OsÃÆ'³rio told The Banker , "We will maintain a different brand because customers are very different in attitude."
Lloyds Banking Group is listed on the London Stock Exchange (LSE) and is a constituency of the FTSE 100 Index. It has a market capitalization of approximately GBÃ, Â £ 57.7billion on March 4, 2014 - the 7th largest of any LSE company. It has a secondary listing on the New York Stock Exchange, where it has a market capitalization of US $ 34.45 billion .
Video Lloyds Banking Group
History
Origins
Lloyds Bank is one of the oldest banks in the UK, tracking its founding to Taylors and Lloyds which was founded in 1765 in Birmingham by key maker John Taylor and iron producer and dealer Sampson Lloyd II. Through a series of mergers, Lloyds became one of the Big Four banks in the UK.
Bank of Scotland, dating from the 17th century, is the second oldest UK bank, second only to the Bank of England. In 2001, a wave of consolidation in the UK banking market led the former Halifax Building Society - originating from 1853 - to approve a merger worth 10.8 billion pounds with Bank of Scotland.
Trustee Savings Bank (TSB) can trace its roots back to the first savings bank founded by Henry Duncan in Ruthwell, Dumfriesshire in 1810. TSB itself was created in 1985 by the Parliament Act that incorporates all the remaining savings banks in the UK & Wales as TSB Bank plc and in Scotland (except Airdrie Savings Bank) as TSB Scotland plc.
Merge Lloyds/TSB
In 1995, Lloyds Bank joined TSB, forming Lloyds TSB Group plc.
In 2000, the group acquired Scottish Widow, a Edinburgh based life insurance company, in a £ 7 billion deal. This makes the group the second largest life insurance and pension provider in the UK after Prudential. In September of the same year, Lloyds TSB purchased Chartered Trust from Standard Chartered Bank for Ã, Â £ 627 million to form Lloyds TSB Asset Finance Division, which provides motor, retail and personal financing in the UK under the trade name Black Horse.
Lloyds TSB continued to take part in consolidation, making a takeover bid for Abbey National in 2001, which was later rejected by the Competition Commission. In October 2003, Lloyds TSB Group approved the sale of its subsidiary NBNZ Holdings Limited - consisting of New Zealand Group banking and insurance operations - into Australia and the New Zealand Banking Group. In July 2004, Lloyds TSB Group announced the sale of its business in Argentina to Banco Patagonia Sudameris S.A. and his business in Colombia to Primer Banco del Istmo, S.A..
On December 20, 2005, Lloyds TSB announced that it had reached an agreement to sell the Goldfish credit card business to Morgan Stanley Bank International Limited for £ 175 million. In 2007, Lloyds TSB announced it had sold its Abbey Life insurance division to Deutsche Bank for £ 977 million.
HBOS Acquisition
On September 17, 2008, the BBC reported that HBOS was in takeover talks with Lloyds TSB, in response to sharp declines in HBOS stock prices. The talks concluded with a successful evening with a proposal to create a banking giant that would hold one-third of UK mortgages. The announcement was made on September 18, 2008.
On November 19, 2008, the purchase of new shares and purchase of government preferences was approved by shareholders of Lloyds TSB. HBOS shareholders are amazingly approving a deal on 12 December. Lloyds TSB Group changed its name to Lloyds Banking Group after the takeover settlement on January 19, 2009.
On February 12, 2009, Eric Daniels, Group CEO, was asked about the banking crisis during the Financial Election Committee sessions of the House of Representatives. One of the main issues related to the takeover of HBOS Lloyds and the amount of due diligence made prior to the acquisition. Daniels says that the company always wants to do due diligence against other companies, but there are legal restrictions on how many possibilities before the actual acquisition. Losses slightly more than Ã, Â £ 10 billion were originally identified by due diligence due to the removal of property loans due to falling property prices and a lack of demand for it. The chairman of Lloyds, Sir Victor Blank, said in August 2009 that losses had been "at the worst end of expectations", and that Lloyds's board was shocked by the pace at which the losses - caused by the unexpected sharp contraction of the world economy in late 2008 and early 2009 - happen. This position was confirmed by Archie Kane, a senior Lloyds executive in Scotland, as evidence to the Scottish Parliament's economic committee in December 2009.
On February 13, 2009, Lloyds Banking Group said that the loss in HBOS is greater than anticipated, around Ã, Â £ 10 billion. Lloyds Banking Group's share price fell 32% on the London Stock Exchange, bringing another bank's shares with it.
October 2008 to January 2009
On October 13, 2008, Prime Minister Gordon Brown announced a government plan for the Treasury to invest Ã, Â £ 37 billion ( US $ 64 billion , EUR47 billion) from new capital to major UK banks - including Royal Bank of the Scottish Group, Lloyds TSB and HBOS - to prevent the collapse of the financial sector. Barclays avoids taking capital investments from the UK Government by raising capital privately and HSBC transfers capital to its UK business from other businesses abroad.
He later confirmed that Lloyds TSB will be required by the Financial Services Authority (OJK) to extract additional capital from the government if it does not take over HBOS. Following the recapitalization and acquisition of Lloyds' from HBOS, the British Government holds a 43.4% stake in Lloyds Banking Group.
February to June 2009
In February 2009, after it became clear that the recession would be deeper than anticipated, the FSA was instructed to "test stress" the banks against the severe economic downturn. OJK states that the assumptions underlying the stress test are not intended to be predictions of what might happen, but to simulate a near disaster economic scenario. These assumptions include:
- Fall from peak to UK Gross Domestic Product (GDP) by more than 6%, without growth until 2011 and return to growth trends in 2012;
- The rise in the UK unemployment rate to over 12%;
- 50% decrease from UK's lowest price;
- A 60% drop from the lowest price in UK commercial property prices.
The conclusion of this exercise is that Lloyds will need additional capital if such a scenario ever happened. Since the wholesale fund market was effectively closed at the time, in March 2009 Lloyds made a deal with the British government which consisted of two elements:
- Redemption of Preference Shares. A total of 4 billion shares of UKFI's pre-owned (non-voting) shares were settled on June 8, 2009 after the issuance of new common shares - this avoids paying an  £ 480 million annual interest to the Treasury and allowing Lloyds to resume dividend payments when profits allowed. This new common stock was initially available to existing shareholders through an Open Offer at 38.43 pence closed on 5 June 2009 - 87% taken. The remaining 13% were placed on the market on June 8, 2009 at 60 cents. This Open Offer and Placement are borne by the Ministry of Finance; if none of these new common shares are purchased by existing shareholders or open markets, the government - as underwriter - will buy it and their shareholding will increase to a maximum of 65%. This is not the case; the government's holding remained at 43.4% and Lloyds became the first European bank to repay the government's "credit crunch" investment. After 43.4% of government participation in the June Public Offering, the average purchase price of the government's total shares was 122.6 pence.
- Asset Protection Scheme. Lloyds agreed in principle to include the Government Asset Protection Scheme to ascertain it against potential future losses on previous loans - especially on the old HBOS portfolio. The cost for this will be paid by the issue to a new government of 'B' (non-voting) shares, which may increase government holdings up to a maximum of c.62% - or higher if the government owns all common shares issued to redeem the stock of preference.
June 2009 to present
Lloyds defects peaked in the first half of 2009; in mid-2009, Asset Protection Schemes increasingly looked like a bad deal for Lloyds. After negotiations, the government confirmed on 3 November 2009 that Lloyds will not enter the scheme - although RBS still does so. Instead, Lloyds launched the right issue to raise capital from existing shareholders; as the existing 43.4% shareholder, the government chose to take part in this and thus retain its shareholding in 43.4%. After this, the National Audit Office calculates the average government purchase price for all of its shares in Lloyds to about 74 cents.
It was announced in the Government's Pre-Budget Report on December 9, 2009 that the forecast for total taxpayer losses for all bank bailouts has been reduced from Ã, Â £ 50 billion to Ã, Â £ 10 billion - in part due to the restructuring of the Government Asset Protection Scheme. The last part of the capital increase in December 2009 involves issuing new shares to debt holders in February 2010. This weakens existing shareholders - including the British Government, whose shareholding decreases from 43.4% to around 41%. According to the general secretary of the trade union Accord, Ged Nichols, Lloyds Banking Group has cut 30,000 jobs between February 2009 and August 2011; and in August 2011 announced 1,300 job losses. The group sold its 70% stake in Esure insurance company to Esure Group Holdings on February 11, 2010. The share is worth approximately £ 185 million.
On November 4, 2012, it was reported that Lloyds is considering selling 60% of its stake in Place Wealth Management at St James to collect about Ã, Â £ 1 billion. In April 2013, Lloyds sold a losing Spanish retail operation - initially Banco Halifax Hispania - and local investment management business in Spain to Banco de Sabadell. Lloyds will receive a 1.8% stake in Sabadell worth approximately EUR84 million and an additional amount up to EUR20 million over the next five years. In September 2013, it was reported that the British government plans to sell up to a quarter of its stake in Lloyds Banking Group. The government sold its 6% stake on September 17, 2013 at 75p, raising £ 3.2bn and reducing its holdings to 32.7%. The British government then sold a further 7.8% on March 26, 2014 at 75.5 p further raising £ 4.2 billion and reducing its holdings to 24.9%. The phased sales sales plan during 2015 reduced its public shareholding to below 10% by the end of October. Sales continued in November 2016, as the holding reduced to 7.99%. On March 17, 2017, the British Government confirmed the remaining shares in Lloyds Banking Group had been sold.
Divestment
UK Government purchases of 43.4% of the group's shares in 2009 were considered state aid; under the European Commission competition law, the group will be required to sell some of its business. The group divestment plan - codenamed "Verde" - identifies the 632 branches to be transferred to the new business. Customers with accounts owned by the branch, and staff employed therein, will be transferred. The new business will be formed from several branches of Lloyds TSB in England and Wales, all branches of Lloyds TSB Scotland plc and Cheltenham & Gloucester plc; this will operate under the TSB brand as TSB Bank plc. The rest of Lloyds TSB's business will be renamed Lloyds Bank.
Lloyds Banking Group reached a Head of Terms agreement in July 2012 to sell the Verde branch to The Co-operative Bank for Ã, Â £ 750 million. The final transfer of TSB Bank plc to the new owner will be completed by the end of 2013. In February 2013, it was reported that Lloyds Banking Group is considering the stock market flotation of the TSB business as an alternative, if the transfer is incomplete. On April 24, 2013, The Co-operative Bank decided not to proceed with the acquisition due to the economic downturn and strict regulatory environment imposed on banks. Lloyds Banking Group said that the rebranding to TSB Bank will still take place and that the new bank will be divested through an initial public offering in 2014. TSB Bank began operations on September 9, 2013, under CEO Paul Pester.
Lloyds Banking Group announces that 25% of TSB shares will be posted on June 24, 2014; however, with an offer that is 10 times overpaid, 35% of TSB shares are sold at 260p on June 20. Banco Sabadell agreed to purchase the TSB in March 2015, and complete the acquisition on July 8, 2015. The purchase means Lloyds sold its last ownership in TSB.
Maps Lloyds Banking Group
Division and subsidiary
Personal equity
In 2016, Lloyds's private equity division, Lloyds Development Capital (LDC), acquired a 33% stake in the game developer Team17 in exchange for investment of GBÃ, £ 16.5 million. LDC will sell half of these shares in the Alternative Investment Market because Team17 intends to go public. In May 2018, prior to the initial public offering of Tim17, LDC shares were priced GBÃ, £ 76 million. Retail
Retail led by David Oldfield is the face of Lloyds Banking Group, on the highway, on the phone and online. With a total of 30 million subscribers, they are the largest retail bank in the UK. The division focuses on Lloyds Bank in England and Wales and the Scottish Bank in Scotland, providing a range of banking and financial services to approximately 15 million private subscribers through over 1,500 branches across the UK.
Halifax also provides a range of banking and financial services to approximately 15 million private subscribers through c.700 branches across England, Wales, Scotland and Northern Ireland. Lloyd's is the largest company in the metropolitan area of ​​Calderdale, West Yorkshire, where it has its subsidiary headquarters in Halifax, major offices and central data centers.
Other units include Birmingham Midshires, mortgage and savings brands, and Smart Finance.
Commercial Banking
This division, led by Andrew Bester, Group Executive Director, provides banking services and related services for Small & amp; Medium Enterprises (UKM), medium-sized enterprises, large and multinational companies in the UK and financial institutions.
- Commercial Banking Lloyds Bank
- Lloyds Securities (US Branch)
- Corporate Banking, Financial Markets, Capital Markets
- Bank of Scotland Commercial
- Lloyds Bank Commercial Finance
Insurance
The Insurance Division, led by Antonio Lorenzo, Group Director, is one of the largest insurance companies in the UK and provides long-term savings, protection and investment products and general insurance products to customers in the UK and Europe. The Scottish Widow is a provider of life insurance, pension and investment products of the Group, distributed through the Lloyds Banking Group branch network, through independent and direct financial advisors by telephone and Internet. Insurance and Investment also covers the guarantee and guarantee of general insurance (home, creditors, motorcycles, travel, pets).
- Clerical Medical - Clerical Medical sales team joined the Scottish Widow in 2009.
- Lloyds Bank Insurance Services Limited
- Halifax Insurance
- Building, Contents, and Motor Insurance through:
- Lloyds Bank, Halifax & amp; Bank of Scotland Branch
- Phone sales
- Internet
- 3rd party, e.g. Moneysupermarket.com
- Scottish widow - offset mortgage
Consumer Financing
Consumer Finance, led by AntÃÆ'³nio Lorenzo, Group Director, consists of three different businesses: Asset Finance, Cards and Online Deposit Europe.
- Asset Finance This business consists of two major brands:
- Lex Autolease
- Black Horse
- Consumer Credit Card
- MBNA
- Commercial Card and Getting Solution
- European Home Banking
Responsible sponsors and business programs
Lloyds Banking Group is an active supporter of disabled rights and best practice; it is a Gold member of the Entrepreneurs Forum on Disability. In 2010, the group helped create and currently sponsor the Royal Association for Disability Rights (RADAR) Referral Network, which aims to support and develop a talent pool of people with disabilities and health conditions, and potentially serve as a source of thought for the organization about how ' defects' are best seen and developed.
In 2011, Lloyds Banking Group established the Lloyds Scholars Program, a social mobility program aimed at British students, in partnership with nine leading universities in the UK. The Scholarship program takes 15 students per university per year and consists of  £ 1,000 per year scholarships paid directly to students to help with living expenses, Lloyds Banking Group mentors and two ten-week interns, paid at £ 18,000 pro rata. The program supports students throughout their university career and requires a Scholarship Recipient to complete 100 hours of volunteers in their local community, per year from their degree. There are also restrictions on who can apply, excluding medical and veterinary students, as well as anyone with a residual household income as defined by their student funding agency over Ã,  £ 25,000 per year, since the program is a social mobility initiative. Lloyds Scholars must complete the degree program in one of the nine partner universities of the Group:
- University College London
- University of Bath
- University of Birmingham
- University of Bristol
- University of Edinburgh
- Oxford University
- University of Warwick
- University of Sheffield
- Queen's University Belfast.
The Scholarship Program is part of a wider set of operations undertaken by Lloyds Banking Group to fulfill their goal of 'Helping the Prosperous Britain'.
Awards and acknowledgments
In July 2007, Euromoney announced Lloyds TSB as the winner of the Prize for Excellence.
In June 2008, Lloyds TSB Group was ranked top in the annual Race for Opportunity (RfO) survey.
In May 2009, Lloyds TSB Corporate Markets was recognized as 'Bank of the Year' for the fifth year running at the FD/CBI FDs Excellence Award.
In October 2009, the "What Investment" award magazine, Halifax won the Best Savings Account Provider and Halifax Share Dealing was also named the Best Share Sharing Service.
In October 2009, "Consumer Money Awards", Halifax won Best First KPR Provider. The Lloyds brand is praised in several other categories, including Cheltenham & amp; Gloucester for the Best Remortgage Provider and the Best High Street Mortgage Provider; Lloyds TSB for Best Account Provider, Best Student Service Provider and Best Customer Service Provider; and Halifax for the Best ISA Provider and the Best High Street Savings Provider.
At the November 2009 Personal Finance Awards, Halifax was awarded the Best Premium Demand Account for the Ultimate Reward Account and the Best Savings Account Provider. In the category of the Best KPR Providers, Halifax is highly praised. Halifax Sharedealing has been named the Best Online Stockbroker for the third year in a row, and is highly praised in the Excellence in Customer Service category. Halifax Investments is named Best Provider of Investment Products. Lloyds TSB wins the Best Student Financial/Banking Provider and is also highly praised in the Best Account Provider award. Scottish widows are highly praised in the category of Best Retirement Providers.
In November 2009, "Your Mortgage Awards", Halifax won the award for Best Mortgage Loan Recipient for the eighth year, as well as the award for Best Mortgage Lender. Birmingham Midshires was named Best Specialist and Buy-to-Let Mortgage Lender, and Lloyds TSB won the award for Best Overseas Mortgage Lender.
Controversy
Money laundering
A 2010 report by the Wall Street Journal illustrates how Credit Suisse, Barclays, Lloyds Banking Group and other banks are involved in helping the Alavi Foundation, Bank Melli, the Government of Iran and others avoid US laws that prohibit financial transactions with other countries. country. They do this by removing information from wire transfers, thus hiding the source of funds. Lloyds Banking Group settled with the US government for US $ 350 million . The US Manhattan District Attorney's office is involved, although the case is coupled with one in the US Department of Justice.
Tax evasion
In 2009, a case was filed against Lloyds by HM Revenue and Customs on the basis of tax evasion. Lloyds is accused of pouring hundreds of millions of pounds into transatlantic tax avoidance schemes in lending to American financial institutions.
Complaints via the Financial Ombudsman Service
Lloyds TSB received 9,952 complaints through the Financial Ombudsman Service in the last half of 2009. This, when added to other brands from Lloyds Banking Group, doubled the number of complaints received by Barclays - the most complained by Bank UK. The Financial Ombudsman Service upholds fewer complaints against Lloyds TSB than against Barclays.
Sharia Account
Lloyds TSB became the first major UK bank to launch a shariah compliant business account. Business and Islamic Corporate Accounts must be executed in accordance with the principles of sharia, which has resulted in some controversy.
HBOS Forgery
Lloyds Banking Group has been criticized for failing to compensate, or even apologize to, victims of fraud committed by HBOS employees.
References
External links
- Official website
- The Lloyds Banking Group company is grouped in OpenCorporates
Source of the article : Wikipedia
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