LLOYDS TSB

'Lloyds TSB Group plc' () is a banking and insurance group in the United Kingdom. It was formed in 1995 by the merger of Lloyds Bank and the Trustee Savings Bank (TSB). The Group's head office is at 25 Gresham Street, London.
Lloyds TSB is currently the fifth largest banking group in the UK, operating in England and Wales as Lloyds TSB; and in Scotland as Lloyds TSB Scotland. Its other subsidiaries include the mortgage bank Cheltenham and Gloucester; life assurance company Scottish Widows; and finance house Blackhorse.
The long running advert series started by Lloyds bank, and still used by Lloyds TSB features a black Trakehner horse and currently uses the music "Eliza Aria" from Wild Swans by Elena Kats-Chernin
The Bank's former employees include 2007 BDO World Darts Championship winner Martin Adams and science fiction historian David J. Howe.

Contents

History

Formation

UK expansion

Financial difficulties

Group structure

External links

History

Formation

Lloyds TSB was created in 1995, when the Lloyds Bank and the Trustee Savings Bank ("TSB") agreed to merge their operations, creating at that time the second largest bank in the UK by market capitalisation after HSBC Holdings; and the largest by market share.
Lloyds Bank was one of the oldest banks in the UK, formed in 1765 in Birmingham. Through a series of mergers Lloyds emerged to become one of the Big Four banks in the UK.
In contrast TSB was created in 1985, by an Act of Parliament that merged together all (except Airdrie Savings Bank) the remaining savings banks in Great Britain under TSB Bank plc. However the TSB could trace its roots back to the first savings bank founded by Henry Duncan in Ruthwell, Dumfriesshire in 1810.

UK expansion

The creation of Lloyds TSB was the beginning of a large scale consolidation in the UK banking market. Lloyds TSB continued to take part in the consolidation, making a takeover bid for the Abbey National in 2001, although this was later rejected by the Competition Commission.
In 2000, the group acquired Scottish Widows, a mutual life assurance company based in Edinburgh in a deal worth £7 billion. [1] This made the group the second largest provider of life assurance and pensions in the UK after the Prudential.
The group later acquired the Goldfish financial services group from Centrica, though the brand was later sold to Morgan Stanley.
In September 2000, Lloyds TSB purchased Chartered Trust from the Standard Chartered Bank for £627m to form Lloyds TSB Asset Finance Division which provides motor, retail and personal finance in the United Kingdom under the trading name Black Horse.

Financial difficulties

At the time of creation, Lloyds TSB was the largest bank in the UK and Europe. However it has lagged behind the growth of other UK banks, most notably the Royal Bank of Scotland. An acquisition of Scottish Widows Life Assurance Society was judged to be poor value for money. Poor performance led the bank to dispose of many overseas assets, namely the Brazilian and New Zealand operations.

Group structure

★ 'UK Retail banking'

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★ Lloyds TSB Bank - England and Wales

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★ Lloyds TSB Scotland - Scotland

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★ Cheltenham and Gloucester- mortgage and savings bank

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★ Scottish Widows Bank- direct banking arm of Scottish Widows

★ 'Insurance and Investments'

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★ Scottish Widows

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★ Lloyds TSB Insurance Services Limited

★ 'Wholesale and International Banking'

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★ Lloyds TSB Asset Finance

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★ Blackhorse

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★ Offshore Banking

External links

★ Group overview

★ Lloyds TSB web site

★ Lloyds TSB Spain web site

★ Friends of the Action Group