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52-645: 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. 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. The Group's headquarters are located at 25 Gresham Street in

104-488: A collapse of the financial sector. Barclays avoided taking a capital investment from the UK government by raising capital privately and HSBC moved capital to its UK business from its other businesses overseas. It was later confirmed that Lloyds TSB would have been required by the Financial Services Authority (FSA) to take additional capital from the government if it had not taken over HBOS. After

156-485: A portion of its business. The group's divestment plan—codenamed "Verde"—identified 632 branches which would be transferred to a new business. Customers with accounts held by the branches, and staff employed within them, would be transferred. The new business would be formed from some Lloyds TSB branches in England and Wales, all branches of Lloyds TSB Scotland plc and Cheltenham & Gloucester plc; these would operate under

208-562: A report on the fraud at the request of the bank, called Project Lord Turnbull. She subsequently left the bank and claimed for constructive dismissal. In January 2019, the Group was criticized by the Chair of the Business, Energy and Industrial Strategy Committee for changes to its overdraft fees policy. Rachel Reeves MP said of the changes that "While [they] might be legal, they are not within

260-464: 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. In July 2007, Euromoney announced Lloyds TSB as the winners of its Awards for Excellence. In June 2008, Lloyds TSB Group came top in the Race for Opportunity's (RfO) annual survey. In May 2009, Lloyds TSB Corporate Markets was recognised as 'Bank of

312-666: A stock market flotation of the TSB business as an alternative, should the transfer not be completed. On 24 April 2013, The Co-operative Bank decided not to proceed with the acquisition because of the economic downturn and the tough regulatory environment imposed on banks. Lloyds Banking Group said that the rebranding to TSB Bank would still take place and that the new bank will be divested through an initial public offering in 2014. TSB Bank began operations on 9 September 2013, under CEO Paul Pester . Lloyds Banking Group announced that 25% of TSB's shares would be floated on 24 June 2014; however, with

364-455: 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. 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 an Act of Parliament that merged all

416-563: 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'

468-832: Is best spotted and developed. 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. 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. 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. There are also restrictions on who can apply, which exclude medical and veterinary students, as well as anyone with

520-528: 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. Through a series of mergers, Lloyds became one of the Big Four banks in the UK. Bank of Scotland , which originated in the 17th century, is the second-oldest surviving UK bank after the Bank of England . In 2001,

572-550: Is why a target of the United Nations Sustainable Development Goal 10 is to improve the regulation and monitoring of global financial institutions and strengthen such regulations. Standard Settlement Instructions (SSIs) are the agreements between two financial institutions which fix the receiving agents of each counterparty in ordinary trades of some type. These agreements allow the related counterparties to make faster operations since

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624-573: 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

676-634: The Australia & New Zealand Banking Group purchased the National Bank. Included in the sale was the right to continue to use the Black Horse logo for seven years. In September 2012, ANZ announced that the National Bank brand would be retired in favour of the ANZ brand over the next two years. The National Bank was the sponsor of New Zealand Cricket and sponsors all the home tournaments of

728-754: 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 . The Group also has overseas operations in the US and Europe. Its headquarters for business in the European Union is in Berlin , Germany . 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

780-516: The Financial Supervisory Authority of Norway , Germany with Federal Financial Supervisory Authority and Russia with Central Bank of Russia . Merits of raising funds through financial institutions are as follows: National Bank of New Zealand The National Bank of New Zealand Limited ( NBNZ ), often referred to as The National Bank , was one of New Zealand 's largest banks. Throughout much of its history,

832-880: The United States , where the key governing bodies are the Federal Financial Institutions Examination Council (FFIEC), Office of the Comptroller of the Currency – National Banks, Federal Deposit Insurance Corporation (FDIC) State "non-member" banks, National Credit Union Administration (NCUA) – Credit Unions, Federal Reserve (Fed) – "member" banks, Office of Thrift Supervision – National Savings & Loan Association, State governments each often regulate and charter financial institutions. Countries that have one consolidated financial regulator include: Norway with

884-562: The BBC reported that HBOS was in takeover talks with Lloyds TSB, in response to a precipitous drop in HBOS's share price. The talks concluded successfully that evening with a proposal to create a banking giant which would hold a third of UK mortgages. An announcement was made on 18 September 2008. On 19 November 2008, the new acquisition and government preference share purchase was agreed by Lloyds TSB shareholders. HBOS shareholders overwhelming approved

936-592: 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%. 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. On 4 November 2012, it was reported that Lloyds

988-569: The National Audit Office calculated the government's average buying price for its entire stake in Lloyds to be about 74 pence. 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. The final part of

1040-402: The National Bank of New Zealand overseas share register throughout the 1950s and early 1960s This situation continued until 1966, when Lloyds Bank purchased The National Bank outright. In 1967 National Bank and the Bank of New Zealand established joint data processing services operated by Databank Systems . The other trading banks joined the now proven computer system and ownership of Databank

1092-570: The National Bank provided commercial banking services to mainly major industrial and rural as well as some personal customers. In 1966, Lloyds Bank became the sole owner. In 2003 Lloyds sold the bank to the Australia & New Zealand Banking Group . The brand was retired in September 2012. The successful flotation of the National Bank of New Zealand in London was announced in October 1872. It

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1144-585: The TSB brand as TSB Bank plc . The remainder of the Lloyds TSB business would be rebranded as Lloyds Bank. Lloyds Banking Group reached a Heads of Terms agreement in July 2012 to sell the Verde branches to The Co-operative Bank for £750 million. The final transfer of TSB Bank plc to the new owner was due to be completed by late 2013. In February 2013, it was reported that Lloyds Banking Group were considering

1196-793: The Year' for the fifth year running at Real FD/ CBI FDs' Excellence Awards. 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. 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. In November 2009's "Your Mortgage Awards", Halifax won

1248-536: The acquisition. Daniels said that a company would always like to do more due diligence on another company, but there are legal limits on how much is possible before an actual acquisition. Losses were slightly more than the £10 billion originally identified by the due diligence owing to write-offs of property loans because of falling property prices and the lack of demand for it. The then-Chairman of Lloyds, Sir Victor Blank , said in August 2009 that losses had been "at

1300-424: The award for Best Overall Mortgage Lender for the eighth year running, as well as the award for Best Large Loans 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. A 2010 report by The Wall Street Journal described how Credit Suisse , Barclays, Lloyds Banking Group, and other banks were involved in helping

1352-498: The case was merged with one at the federal US Department of Justice. In 2009, a case was brought against Lloyds by HM Revenue and Customs on grounds of tax avoidance . Lloyds was accused of disguising loans to American companies as investments in order to reduce the tax liability on them. Lloyds TSB received 9,952 complaints via the Financial Ombudsman Service in the last half of 2009. This, when added to

1404-602: The deal on 12 December. Lloyds TSB Group changed its name to Lloyds Banking Group upon completion of the takeover on 19 January 2009. On 12 February 2009, Eric Daniels , the CEO of the Group, was questioned about the banking crisis during a session of the Treasury Select Committee of the House of Commons . One of the key issues concerned Lloyds' takeover of HBOS and the amount of due diligence carried out before

1456-652: The different brands because the customers are very different in terms of attitude". 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 £ 30.65 billion as of 1 August 2022—the 19th-largest of any LSE listed company—and has a secondary listing on the New York Stock Exchange in the form of American depositary receipts . Lloyds Bank

1508-470: 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%. Following this,

1560-551: The following year. The bank tentatively dipped a toe into foreign waters in 1969 when it established a branch in Rarotonga , Cook Islands . This foray ended in 1986 when it sold its banking license in Rarotonga to European Pacific Banking Company. The head office was moved from London to Wellington in 1978 and the Black Horse became its emblem. The Black Horse logo dates back to 1677 London when Humphrey Stockes adopted it as

1612-512: The losses at HBOS were greater than had been anticipated, at around £10 billion. The share price of Lloyds Banking Group fell 32% on the London Stock Exchange , carrying other bank shares with it. On 13 October 2008, Prime Minister Gordon Brown announced a government plan for the Treasury to invest £37 billion ( US$ 64 billion , €47 billion ) of new capital into major UK banks—including Royal Bank of Scotland Group , Lloyds TSB and HBOS—to avert

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1664-449: The money supply via fractional-reserve banking . Regulatory structures differ in each country, but typically involve prudential regulation as well as consumer protection and market stability. Some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers. Countries that have separate agencies include

1716-643: The new policy stated that the account amounted to religious discrimination , as users of the Sharia-compliant account would not incur interest if they went overdrawn , in contrast with users of typical current accounts. The bank responded that the account was available to both Muslims and non-Muslims, and that comparisons of interest rates between its Islamic Account and traditional current accounts were "meaningless". Lloyds Banking Group has been criticised for failing to compensate, or even apologise to, victims of fraud perpetrated by employees of HBOS . LBG

1768-534: The next five years. 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. The government sold 6% of its shares on 17 September 2013 at 75p, raising £3.2 billion and reducing its stake to 32.7%. 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%. A trading plan of incremental sales during 2015 reduced

1820-464: The offer being 10 times oversubscribed, 35% of TSB's shares were sold at 260p on 20 June. Banco Sabadell agreed to purchase TSB in March 2015, and completed the acquisition on 8 July 2015. The purchase meant Lloyds sold its final holding in TSB. The business is divided into five divisions: Refers to Chairmen and Chief Executives since 2009, when Lloyds Banking Group was formed. Lloyds Banking Group

1872-453: The other brands of the Lloyds Banking Group, was twice the number of complaints received by Barclays—the next-most-complained-about UK bank. The Financial Ombudsman Service upheld fewer complaints against Lloyds TSB than it did against Barclays. In 2014, Lloyds launched the 'Islamic Account', a current account aimed at Muslims and which it stated was compliant with Sharia law – namely, the prohibition of credit or debit interest. Critics of

1924-532: The publicly owned stake to below 10% by the end of October. Sales resumed in November 2016, as the holding was reduced to 7.99%. On 17 March 2017, the British government confirmed its remaining shares in Lloyds Banking Group had been sold. The UK government's purchase of a 43.4% stake in the group in 2009 was considered as state aid; under European Commission competition laws, the group would be required to sell

1976-466: The recapitalisations and Lloyds' acquisition of HBOS, the UK Government held a 43.4% stake in Lloyds Banking Group. 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

2028-583: The remaining savings banks in England & Wales as TSB Bank plc and in Scotland (except Airdrie Savings Bank ) as TSB Scotland plc. In 1995, Lloyds Bank plc merged with TSB Group plc, forming Lloyds TSB Group plc. In 2000, the group acquired Scottish Widows , a mutual life-assurance company based in Edinburgh, in a deal worth £7 billion. This made the group the second-largest UK provider of life assurance and pensions after Prudential . In September

2080-556: The right to issue banknotes redeemable (in specie or gold). Though the bank was technically domiciled in London (which provided certain advantages) the major portion of its shareholders were New Zealand resident or associated. In 1894 its headquarters were moved from Dunedin to Wellington. Lloyds Bank acquired a small interest in The National Bank in 1919. There was a steady substantial drain of New Zealand shareholdings to

2132-793: The sale of its subsidiary NBNZ Holdings Limited —comprising the Group's New Zealand banking and insurance operations—to Australia and 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 its business in Colombia to Primer Banco del Istmo, S.A. On 20 December 2005, Lloyds TSB announced that it had reached an agreement to sell its credit card business Goldfish to Morgan Stanley Bank International Limited for £175 million. In 2007, Lloyds TSB announced that it had sold its Abbey Life assurance division to Deutsche Bank for £977 million. On 17 September 2008,

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2184-605: The same year, Lloyds TSB purchased Chartered Trust from Standard Chartered Bank for £627 million to form Lloyds TSB Asset Finance Division, which provides motor, retail and personal finance in the United Kingdom under the trading name Black Horse. Lloyds TSB continued to take part in the consolidation, making a takeover bid for Abbey National in 2001, which was later rejected by the Competition Commission . In October 2003, Lloyds TSB Group agreed on

2236-543: The sign for his shop. Stokes was a goldsmith and 'keeper of the running cashes', a banker. When Lloyds Bank took over his site in 1884 it kept the horse as its symbol. The National Bank acquired Southpac Investment Management in 1983. Five years later it bought The Rural Bank, the former New Zealand Government owned bank, from Fletcher Challenge . It continued consolidating banking in NZ by purchasing Countrywide Banking Corporation from Bank of Scotland in 1998. In December 2003,

2288-611: The spirit of the FCA's recommendations" to scrap overdraft fees and replace them with a single interest rate and that they would "increase the charges for the vast majority of customers". A review conducted by Thames Valley Police indicated that fraud may have been committed at the Lloyds Business Support Unit based in Bristol. Lloyds Banking Group have denied this. There are more than two hundred alleged victims of

2340-414: The time used to settle the receiving agents is conserved. Limiting each subject to an SSI also lowers the likelihood of a fraud . SSIs are used by financial institutions to facilitate fast and accurate cross-border payments. Financial institutions in most countries operate in a heavily regulated environment because they are critical parts of countries' economies, due to economies' dependence on them to grow

2392-494: The unit who have asked the police to investigated their claims. Financial institution Financial institutions can be distinguished broadly into two categories according to ownership structure: Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served. This

2444-489: The worst end of expectations", and that the Lloyds board was surprised by the speed at which the losses—which were caused by the unexpectedly sharp contraction of the world economy in late 2008 and early 2009—happened. This position was confirmed by Archie Kane, a senior Lloyds executive in Scotland, in evidence to the Scottish parliament's economy committee in December 2009. On 13 February 2009, Lloyds Banking Group said that

2496-668: Was Edward Brodie Hoare of Barnetts, Hoares, Hanbury and Lloyd, Bankers. From the first New Zealand operations were managed from Dunedin. Adam Burnes was inspector and general manager. The first branch away from Dunedin opened in Wellington in March 1873 with Alexander Kerr as its first manager. Although "harmonised" it did not technically acquire the 13 branches of the Bank of Otago until 1 July 1873. Branches were also opened in 1873 in Auckland and Hamilton and Christchurch . The National Bank of New Zealand (Ltd) Act gave it

2548-490: Was accused of treating the whistle-blowers involved in the HBOS Reading fraud poorly. Customers Paul and Nikki Turner presented evidence of the fraud to the board but were ignored. Indeed, the bank tried to evict them from their home on twenty-two occasions. Sally Masterton was an accountant working for Lloyds who greatly assisted Thames Valley Police in their investigation of the fraud, codenamed Operation Hornet. She wrote

2600-581: Was considering selling its 60% stake in St James's Place Wealth Management to raise around £1 billion. 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

2652-410: 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 deal with the UK government consisting of two elements: Lloyds impairments peaked in

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2704-428: Was to be a New Zealand bank and would begin by buying and expanding the operations of Dunedin 's Bank of Otago . The new bank had been incorporated in London by a group of people including a number of high-profile former New Zealand residents, among them former Governor Thomas Gore Browne , former Speaker Charles Clifford and former Wellington Provincial Superintendent Isaac Featherston . Another board member

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