Lloyds Banking Group
|Lloyds Banking Group
|management||Lord Blackwell (Chairman)
António Horta-Osório (CEO)
|Number of employees||64,928|
|sales||£ 22.091 billion|
|As of December 31, 2018|
The Lloyds Banking Group (until January 18, 2009 Lloyds TSB Group plc (Lloyds TSB Bank)) is a publicly traded British bank , which in September 2008 from a merger with the course of the financial crisis battered HBOS emerged. Lloyds TSB, in turn, was created in 1995 through a merger of the TSB Group and Lloyds Bank.
Lloyds provides banking services to individuals and businesses, including mortgages, investments and life insurance. The group's headquarters are in London . The head office for financial transactions in the European Union is located in Berlin , where around 300 people are employed.
Lloyds-Bank is one of the oldest banking houses in Great Britain. It was founded in Birmingham in 1765 . The Trustee Savings Bank (TSB) was in 1810 by Henry Duncan in Ruthwell , Dumfriesshire in Scotland founded.
In 1765 the Unitarian John Taylor and the Quaker Sampson Lloyd founded a private bank in Birmingham called Taylor & LLoyd . Two of her sons founded Barnett's Hoares Hanbury and Lloyd , whose main house was on Lombard Street in London. But this foundation was later taken over by Lloyds. In 1862 the company expanded beyond the European framework for the first time.
In 1865 the overarching Lloyds Banking Company Limited was established . By 1890 it had taken over 24 other banks. In 1914 Lloyds took over Wilts and Dorset Bank and in 1918 Capital and Counties Bank . Around 50 takeovers followed by 1923, including primarily Fox, Fowler and Co. of Wellington in Somerset. Lloyds Bank (France) was founded in 1911 when Armstrong and Co. in Paris and Le Havre were taken over. Six years later it was run as Lloyds and National and Provincial Bank .
In 1955, Lloyds Bank bought back full ownership of the company and renamed it Lloyds Bank (Foreign) , later Lloyds Bank Europe .
Lloyds acquired the London and River Plate Bank at the end of the First World War . That gave them a foothold in South America. The takeover of the London and Brazilian Bank led to the Bank of London and South America (BOLSA), but it was not until 1971 that Lloyds acquired the majority of BOLSA and combined it with Lloyds Bank Europe to form Lloyds and Bolsa International Bank . In the meantime it was called Lloyds Bank International (LBI), then it was merged with Lloyds Bank in 1986 . The international expansion continued, so that there are now representations in more than 30 countries.
In December 1983 the ailing German private bank Schröder, Münchmeyer, Hengst & Co. was taken over. In 1988 Lloyds Abbey Life was established as an insurance pillar . In 1995 Cheltenham & Gloucester (C&G) joined the Lloyds Bank Group. In the same year, on December 28, 1995, there was a merger with the TSB Group - hence the name Lloyds TSB Group. "TSB" is the name of the Trustee Savings Bank . Less than a year later, Lloyds Abbey Life came into full ownership by the Lloyds TSB Group.
Trustee Savings Bank
The Trustee Savings Bank took a completely different path. TSB was founded by Reverend Henry Duncan (1774-1846) from Ruthwell in Dumfriesshire , in southern Scotland , during the Napoleonic Continental Damage in 1810 and initially served to support the poor parishioners. In 1818 there were almost 300 of these banks in England alone, which are considered to be the world's first not-for-profit savings banks. The Trustee Savings Bank Association (TSBA) was only founded in 1887 to promote cooperation between the individual savings banks. The Central Trustee Savings Bank was set up in 1973 to provide the “Sparbanken” with a banking and, above all, a clearing service.
Two years later, TSB became a member of the London Bankers Clearing House . In order to withstand the growing demands, the remaining 16 savings banks were grouped under the names TSB England and Wales , TSB Scotland , TSB Northern Ireland and TSB Channel Islands .
In 1986 the company was listed on the stock exchange, real estate companies were founded and the Hill Samuel Bank and Target Life were bought . TSB was the first bank to set up a telephone banking system in Great Britain under the name Speedlink .
TSB England and Wales became TSB Bank plc in 1989 and the newly combined TSB Bank Scotland and TSB Bank Northern Ireland were assigned to them as banking subsidiaries. 1991 bought the Allied Irish Banks , the TSB Bank Northern Ireland and in 1992 also became TSB Bank Channel Islands subsidiary.
In 1995 the merger with Lloyds took place.
Lloyds TSB Group
Since the merger in 1995, the group has played an important role in consolidating the UK banking landscape. In 2000, it took over Scottish Widows, a life insurance group, for £ 7 billion, making Lloyds TSB the second largest player in the sector. The takeover of Abbey National was prevented by the competition watchdogs of the Competition Commission . Overall, the group fell behind the other banks in the country in the following years, dropping from first place to fifth place. For example, companies in Brazil and New Zealand were separated, but at the same time new groups of investors were opened up, e. B. by the requirement of the Islamic banking compliant investments.
In addition, the group is a pioneer in the use of less vulnerable security mechanisms in online banking.
The Lloyds Banking Group
On January 19, 2009, Lloyds TSB and Halifax Bank of Scotland ( HBOS ), the UK's largest real estate lender, merged. Talks about a merger went back at least to 2001. The aim of the merger was to create a bank that was stable in all business areas. The purchase price was £ 12.2 billion and was funded through a share swap. HBOS shareholders received 0.83 Lloyds TSB shares per treasury share, valued at 232 pence sterling. The former HBOS shareholders now have a 44% stake in the new financial giant, which collectively holds a good third of all UK mortgage loans and a quarter of UK savings. The new bank has around 38 million customers. The transaction only became possible after antitrust concerns were thrown overboard by both the Bank of England and government agencies. British Treasury Secretary Alistair Darling defended the takeover by pointing out that financial stability is paramount and takes precedence over concerns about competition in the banking sector. Secretary of State for Business and Enterprise John Hutton made a similar statement.
The new Lloyds Banking Group plc. merged companies (e.g. Lloyds TSB, Bank of Scotland , Halifax , Cheltenham & Gloucester , Scottish Widows , Clerical Medical and others) remained under their respective brand names or company names and also retained a relatively large degree of independence.
In the wake of the financial market crisis , the bank received an extensive capital injection from the British government. In the spring of 2009, the state took over a share of 43% and in return imposed conditions to separate parts of the business. However, in contrast to the Royal Bank of Scotland , the bank was able to avoid a majority holding by the government. The bank also waived the government's extensive hedging of balance sheet items with increased risk, which was planned at the height of the crisis, in view of the costs associated with this rescue package (ASP). Instead, the bank carried out the largest capital increase in stock market history. The state only participated to the extent of the shares it had already taken over, so that its participation did not increase any further. Through further measures to strengthen equity capital and regular share sales by the state, the state share now only amounts to 15%.
On March 1, 2011, António Horta-Osório, the former UK boss of the Spanish bank Santander , took over the post of CEO of the British Lloyds Banking Group. He succeeded Eric Daniels, who was retiring.
One of the requirements of the EU, which the partially nationalized bank has to meet in return for state aid received during the financial crisis, is the separation of branches. Lloyds had already announced in June 2009 that it would close the Cheltenham & Gloucester (C&G) branch network with 164 branches in November 2009, but moved away from it a little later. On July 19, 2012, Lloyds announced the sale of 632 stores, including C&G, with 4.8 million customers to the cooperative The Co-operative Group . The purchase price was estimated at £ 350 million, with additional success-based payments of up to £ 800 million through 2027 agreed. Subject to the approval of the relevant regulatory authorities, the deal should be closed by November 2013. However, the sale was stopped due to the imposed conditions; instead, these branches were assigned to the newly founded subsidiary TSB Bank plc , whose placement on the stock exchange was announced for 2014.
In June 2020, DER SPIEGEL reported that the insurance company Lloyd's had apologized for its role in the slave trade . According to the magazine, around 17 million Africans were abducted for the transatlantic slave trade. Now the British insurance group Lloyd's publicly regrets its part in it.
- Annual Report 2018 , accessed March 25, 2019
- Humble beginnings of a banking empire , in: Express & Star, September 19, 2008.
- börsennews.de: Great Britain is pumping further billions into banks . November 3, 2009.
- Lloyds completes capital increase. Handelsblatt, December 14, 2009.
- ROUNDUP: Lloyds again slowed down by contaminated sites - Nevertheless, special dividend beckons. Retrieved March 25, 2019 .
- Stefanie Haxel: Lloyds asks EU for more time to sell branches. Wall Street Journal, June 23, 2013.
- Lloyds sells branches to Co-operative Group focus.de, July 19, 2012.
- Reuters: Lloyds branch sale failed , on reuters.com from April 24, 2013, accessed on May 31, 2013.
- Insurance company Lloyd's apologizes for role in slave trade. SPON (Economy Department), June 18, 2020 (accessed June 21, 2020)