Lloyds’ bidder promises a local flavour

NBNK is one of the front-runners in the auction of 632 outlets being sold by Lloyds Banking Group in order to meet European competition rules.

If the takeover vehicle is successful, Gary Hoffman, the banker who was brought in to rescue Northern Rock before moving to head up NBNK last year, pledged to bring about change for the estate’s 5.5 million customers.

He said they will be able to visit their local branch as late as 9.30pm in the run-up to Christmas, with banks sharing similar opening hours with those of neighbouring shops.

“We’ll have local decision-making.

“Every other bank in the UK is arranged around products. We’ll be arranged around customers and geography,” he said.

The banker, who made his name at Barclays, has also pledged to eradicate short-term annual bonuses for senior managers.

Instead of receiving payouts every year and rewards for their ability to sell products, branch staff would be rewarded according to the loyalty of their custom- ers.

“Eighty-seven per cent of customers complain about hard-selling by banks.

“They talk about being hijacked,” he said.

Lloyds, which trades under the names Lloyds TSB and Cheltenham & Gloucester, is being forced to offload the branches as a penalty for the state aid it received during the 2008 financial crisis.

Ministers hope that the sale will create a new bank which will be fit to challenge other banks and shake up the financial services industry.

Mr Hoffman says that NBNK has come to a decision on a name for the bank, adding that people wanted “something fresh” which suggested NBNK was a new and different bank, not the same as anything before it.

NBNK faces opposition from the Co-operative Group which is also bidding for the Lloyds’ branch- es.

The Lloyds board is reportedly due to meet on December 15 to determine a preferred bidder and an announcement is expected before Christmas.