Member Article

Lloyds will float TSB to satisfy European competition law

Lloyds Banking Group has announced its intention to float 25% of its TSB Banking business, in compliance with a mandate from the European Commission.

An IPO is expected to take place next month, with shares available for institutional and retail investors.

Lloyds says it will dispose of its remaining stake in TSB by the end of 2015, as part of the European Commission mandate.

António Horta-Osório, group chief executive of Lloyds Banking Group, said: “The decision to proceed with an initial public offering of TSB is an important further step for the Group as we act to meet our commitments to the European Commission.

“TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues. It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector.”

Paul Pester, CEO of TSB Banking Group plc, said: “Today is a significant milestone on our journey to create a major new competitive force in UK banking. Everyone involved in the creation of TSB has worked tirelessly to create something truly unique and to create a bank that brings more consumer choice and competition to the market.

“The TSB we see today is unlike any other UK retail bank: we have the mindset and growth potential of a challenger but with the scale and capabilities of an established player.”

“As we prepare for life as an independent, listed entity we are aiming to deliver strong, steady and sustainable growth, over the long-term.

“Our straightforward and simple approach to banking is designed to deliver the kind of bank people tell us they want: every penny our customers deposit with us is used to support mortgages and loans for other TSB customers. This is what we mean by local banking for Britain.”

This was posted in Bdaily's Members' News section by Tom Keighley .