The finance director of Lloyds Banking Group, Tim Tookey, is set to leave the bank in February in order to join the insurance provider Friends Life. He makes the latest senior management official to leave the group since the arrival of new chief executive Antionio Horta-Osorio from Santander’s UK operations earlier in the year.
Following Other Executives’ Footsteps
Helen Weir, head of Lloyds retail banking division, and Archie Kane, head of the insurance division, left earlier this year, with Mr. Tookey following that. Lloyds is 41% owned by the taxpayer and is hoping to find Mr. Tookey’s successor.
Mr. Tookey had been a finance director at Prudential until 2006, when he joined Lloyds. He is now joining Friends Life, whose parent company is Resolution. His statement was, “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 release the group’s potential.”
The bank has recently become impacted in the shake up of regulations proposed by the Independent Commission on Banking, led by Sir John Vickers. Banks will have retail sections “ring-fenced,” or separated from investment arms. Lloyds will be relatively unaffected by this proposal, as it has a small investment arm.
The commission is interested in getting rid of 632 of the group’s branches, but this will not have an impact on the upcoming sale already in place, as a result of the government bailout of the bank in 2008. With respect to this sale, the commission would not be asking more than what was already taking place, according to Jonathan Newman at Brewin Dolphin.
Lloyds shares had risen when the announcement was made, before falling only slightly, unlike most other High Street banks, which were greatly impacted by the proposed changes.
In addition, Lloyds has recently been asked to split into three companies: Lloyds TSB, Halifax, and Bank of Scotland—the three former parts of the group, which combined fully into Lloyd’s Banking Group in 2008, after the banking crisis hit Halifax Bank of Scotland and Lloyd’s TSB took over in order to help out, before the government then stepped in.