Lloyds to choose buyer by year end

Lloyds Banking Group expects to pick a buyer for the 600 branches it has been told to put up for sale by the end of the year – despite the threat it may be ordered to sell more later in the year.
By The Newsroom
Published 19th May 2011, 08:58 BST

The bank said it is moving “full speed” with its strategic revival at its annual general meeting yesterday, where eight per cent of shareholders voted against the bailed-out bank’s executive pay packages.

“We are contacting potential buyers,” new chief executive Antonio Horta-Osorio told the meeting.

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Chairman Win Bischoff said the company is making good progress on the sale of 600 branches demanded by European regulators, even though the Government’s Independent Commission on Banking suggested last month that Lloyds might have to sell hundreds more branches.

Lloyds said the recommendation could delay or complicate its sale programme, although the ICB is not due to make its final recommendations until September.

The sale of the 600 branches, dubbed ‘Project Verde’, could interest Yorkshire Bank’s parent National Australia Bank, Virgin Money, Tesco’s finance arm and new bank venture NBNK.

“The bank is proceeding with Project Verde with full speed and we hope to identify a potential purchaser by the end of 2011,” Mr Bischoff said.

Several private shareholders criticised Lloyds over a potential £10m pay deal for Mr Horta-Osorio.

Related topics:LloydsLloyds Banking GroupGovernmentVirgin Money