Break for “overworked” Lloyds chief

Antonio Horta-Osorio, who became Lloyds chief executive in March, is understood to have requested a leave of absence due to overwork and hopes to return before the end of the year.

Portuguese-born Mr Horta-Osorio is in the midst of implementing his strategic vision for the bank, which is 40.2 per cent state-owned, including overseeing an EU-imposed sale of 632 branches, a revamp of its Halifax brand and around 15,000 job losses.

Lloyds, which is the UK’s biggest lender, declined to comment.

Group finance director Tim Tookey is understood to be lined up to stand in for Mr Horta-Osorio; however, Mr Tookey is leaving the company in February to join life assurer Friends Life.

Mr Horta-Osorio, who last night was absent from a parliamentary committee at which he was due to appear, takes leave less than a week before the banking giant is due to reveal its third-quarter results.

Lloyds reported a £3.3bn pre-tax loss in the six months to June, compared with a £1.3bn profit last year, as the cost of the payment protection insurance (PPI) scandal took its toll.

Stripping out the provision set aside for customers mis-sold PPI, the bank saw underlying profits plunge 31 per cent to £1.1bn as it struggled with the “subdued” economic climate.

As Mr Horta-Osorio battles to turn the underlying business around, he is also juggling the sale of 632 branches - dubbed Project Verde - which has been imposed by the EU in return for the £20bn in state aid it received following the 2008 credit crisis.

However, the group is reportedly considering floating Verde as the likelihood of a sales to a private buyer looked less likely.

NBNK Investments, a takeover vehicle run by former Northern Rock boss Gary Hoffman, confirmed it had bid for Verde.

However, the offer, reported to be £1.5bn, fell short of expectations and the bank is expected to concede by the end of the year that a flotation is likely.