London-based Lloyds Banking Group operates through four main business units: retail, wholesale, insurance, and wealth and international. Its retail division operates through brand names such as Lloyds TSB, Halifax, and Bank of Scotland. The wholesale unit mainly operates through Bank of Scotland in Scotland, and Lloyds in England and Wales, while insurance does business mainly under Scottish Widows. Wealth and international has three main subdivisions: private banking, asset management, and international banking; the unit operates under several brand names in more than 35 countries worldwide.
Formerly known as Lloyds TSB, Lloyds Banking Group was formed in January 2009 after Lloyds TSB acquired mortgage giant HBOS (Halifax Bank of Scotland). The previous incarnation of Lloyds was also created from a huge merger. In 1995, Lloyds Bank and TSB Group combined to form Lloyds TSB, then the second-biggest U.K. bank by market cap (after HSBC). Of course, Lloyds can trace its history much further back—it was established as the private bank of Taylors & Lloyds in Birmingham in 1765. Over the next 200 years, the bank grew through mergers and organic expansion to become one of the biggest banks in the U.K.
The history of the savings bank movement (where the TSB came from) goes back to 1810 when the Revd Henry Duncan founded the world's first self-supporting savings bank in Ruthwell, Dumfriesshire. The savings banks remained local organizations until the 1970s when the banks amalgamated into regional institutions. TSB Group plc was formed in 1986 following flotation on the Stock Exchange.
In 1999, four years after Lloyds TSB was created, all TSB and Lloyds Bank branches in England and Wales were rebranded with the identity of the new entity (Lloyds TSB). A year later, the bank paid £7 billion pounds to acquire Scottish Widows, an Edinburgh-based mutual life-assurance company, further strengthening Lloyds TSB's grip in the U.K. market. Also in 2000, Lloyds TSB established its asset finance division after its £627 million pound purchase of Chartered Trust from Standard Chartered Bank.
Lloyds TSB sold its credit card business Goldfish to Morgan Stanley in 2005 for £1 billion pounds and sold its Abbey Life insurance business to German banking giant Deutsche Bank for a cash consideration of £977 million in 2007. Lloyds also made headway in the U.K. banking market when it became the first among its peers to offer Sharia-compliant business accounts.
In September 2008, only two days after the infamous fall of Lehman Brothers, it was revealed that Britain's Lloyds TSB was in takeover talks with HBOS plc; investors became weary of HBOS' funding capability after the Lehman collapse, sending the U.K.'s largest mortgage lender's shares plunging. Two months later, the acquisition and participation in the U.K. government's recapitalization scheme were both agreed upon by Lloyds Banking Group's shareholders (HBOS shareholders approved of the takeover a few weeks later). The acquisition was officially completed on January 16, 2009, at which point Lloyds TSB changed its name to Lloyds Banking Group.
1095 Avenue of the Americas
New York, NY 10036
Phone: 44 (0) 20 7626 1500
Employer Type: Public
Stock Symbol: LYG
Stock Exchange: NYSE
Executive Director and Group CEO: Antonio Horta-Osorio
2018 Employees (All Locations): 75,000
New York, NY