The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

International rescue: How Horta-Osório relaunched Lloyds

When António Horta-Osório took over Lloyds Banking Group in 2011, a once great institution was on its knees. The scale of the challenge he faced surprised even the new chief executive. Two-and-a-half years later, Lloyds is in the black, posting £2.1 billion in first-half profit, paving the way for the UK government to divest its 39% stake and begin discussions with regulators over resuming dividends. Euromoney tells the inside story of one of the great post-financial crisis turnarounds.

"When I got here, the bank was a time bomb," says António Horta-Osório, chief executive of Lloyds Banking Group. "We had £700 billion of banking assets and £300 billion of wholesale funding, half of which was short-term with an average tenor of two months." He pauses and reflects. "The bank was in danger of going bankrupt."

Aside from all the challenges of cleaning out a toxic loan book, Lloyds was faced with the height of the eurozone crisis, which meant there was a real risk of the short-term money markets closing.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree