Lloyds finance chief latest to leave bank

The part-nationalised bank said Tim Tookey will stay with Lloyds until the end of February as the bank begins its search for a replacement.

Mr Tookey denied his departure was prompted by a rift with Mr Horta-Osório over strategy.

Lloyds, which after an imminent branch sale will have around a quarter of the current account market and about 19 per cent of gross mortgage lending, has announced further ambitious cost cuts.

The bank, 41 per cent owned by the taxpayer, wants to axe another 15,000 jobs and halve its international presence, which it hopes will save it £1.5bn a year by 2014.

“There’s been absolutely no disagreement on strategy between António and I at Lloyds,” said Mr Tookey yesterday.

“I’ve greatly enjoyed developing the strategy with António and bringing it to the market at the end of June, and I’ve enjoyed being part of a team that’s now focused on delivering it.”

Mr Tookey’s departure follows the exit of former Lloyds retail banking head Helen Weir and insurance chief Archie Kane.

Analysts speculated Mr Horta-Osório could promote his former Santander UK colleague Nathan Bostock to replace Mr Tookey.

Mr Bostock was poached from taxpayer-backed rival Royal Bank of Scotland in July to lead Lloyds’ wholesale banking division.

“Nathan Bostock would certainly have the capabilities to be a chief financial officer,” said Espirito Santo analyst Joseph Dickerson.

Others mentioned former Santander UK CFO Antonio Lorenzo as a possible candidate.

“Tim Tookey’s departure represents a de facto clean sweep of the executive team inherited by António Horta-Osório when he arrived in January 2011,” said Evolution Securities analyst Ian Gordon. “We rather doubt that (recruitment) will take too long given that the obvious candidate, Antonio Lorenzo, the former CFO at Santander UK, is already in the building!”

Mr Horta-Osório paid tribute to Mr Tookey, who along with former chief executive Eric Daniels, led the bank through its Government-brokered merger with Halifax Bank of Scotland (HBOS).

“We would all like to thank Tim for the valuable insight and experience he brought to the group during an important period in the group’s development,” he said.

“Tim will continue to play an important role through to the end of February and I wish him all the best for his future after Lloyds Banking Group.”

Mr Tookey joined Lloyds in 2006 as deputy group finance director, and was appointed group finance director in October 2008.

“This has been an important period for the group and I am pleased to have played a part in defining the next stage of the strategy which I fully endorse as the right one to realise the group’s potential,” he said. “With its implementation now underway, this felt like the right time to consider a different challenge.”

Friends Life traces its roots back to 1832 when it was founded in Yorkshire to provide life assurance to Quakers.

It is now a division of insurance group Resolution.

“We do expect further consolidation in the UK life sector and we wanted to have a CFO with significant transaction and capital markets experience,” said Friends Life chief executive Andy Briggs. “Tim clearly has that.”

Sale tagged Project Verde

Lloyds is selling more than 630 branches, a deal dubbed Project Verde, as a condition of accepting state aid during the HBOS takeover.

The Independent Commiss-ion on Banking last week freed Lloyds from having to sell even more branches – contrary to its interim report recommendations.

The ICB said while it still believed Lloyds’ branch sale should be increased, “ensuring the emergence of a strong new challenger” was more important.