Chief executive of Lloyds António Horta-Osório has informed the bank’s board that he will be stepping down in 2021 after ten years with the bank, while Robin Budenberg has been confirmed as the replacement for Lord Blackwell who retires as chair next year.
Horta-Osório delivered three strategic plans in his time as chief executive of the bank, which has seen great change since the Global Financial Crisis, after which it has recovered from the brink of collapse.
To support a smooth transition, Lloyds announced on Monday that Horta-Osório will remain with the bank until "a target date" at the end of June next year, at which point he will retire from Lloyds. In the meantime, he will work with the executive team on delivering the remainder of the current strategic plan, as well as the plans put in place to address the Covid-19 pandemic effects and support customers.
Lloyds said this succession plan will allow Horta-Osório's replacement as chief executive to work with the new chair in the next stage of the group's development.
Horta-Osório said: "It is of course with mixed emotions that I announce my intention to step down as chief executive of Lloyds Banking Group by June next year. I am lucky to have had the support of a superb Board and executive team on whom I will continue to rely as we complete our current strategic plan, transforming the Group into the bank of the future.
"I have been honoured to play my part in the transformation of large parts of our business. I know that when I leave the group next year, it has the strategic, operational and management strength to build further on its leading market position".
Commenting on the departure, analyst at Killik & Co Nicolas Ziegelasch said: "Since joining the bank in 2011, António Horta-Osório has presided over a challenging period for Lloyds, which included a sluggish UK economy, low interest rates, and significant PPI costs.
"While the macroeconomic impact of Brexit and Covid-19 may persist in the medium term, looking further out we continue to like Lloyds as a leader in UK banking that can generate excess capital over time."
Lloyds' new chair Budenberg joins after a long career with S.G. Warburg/UBS Investment Bank. He also worked closely with the UK Government in 2008 as an advisor on the recapitalisation of the country's banking industry.
In 2009 he became chief executive, then chairman, of UK Financial Investments with responsibility for managing the UK government's investment in UK banks, including Lloyds.
Stepping down as chair, Lord Blackwell said his replacement's "knowledge of the group combined with his broad experience in both financial services and other strategic advisory roles give him an outstanding background to provide the board leadership required to support the continued transformation of the group".
He added: "I would also like to take this opportunity to pay tribute to the outstanding contribution that António Horta-Osório has made to first turning round and then leading the strategic development of the group over the last decade.
"His personal commitment and strong vision have driven a period of massive and successful change in the group, restoring Lloyds to its preeminent position in Helping Britain Prosper as the UK's leading retail and commercial bank.
"During his tenure, he has overseen a comprehensive transformation of the Group's balance sheet, operations, and customer propositions, including the repayment of the UK Government's £21bn investment and evolution of the Group into the UK's largest digital bank."
Budenberg said: "Lloyds will play a vital role as Britain recovers from the current crisis. It is a great honour and challenge to take on the role of chair at this time and I hope to continue Norman and António's work, initially alongside António, in pursuing Lloyds' core purpose of helping Britain prosper and in building the culture of the bank in order to support that purpose."