Lloyds share price: Group to unveil CEO of new unit

on Nov 8, 2016
Updated: Oct 21, 2019
Listen

Lloyds Banking Group (LON:LLOY) is set to name the first chief executive of its new non ring-fenced unit, Sky News has revealed. The move will come with UK’s lenders preparing for the ring-fencing rules which aim to separate retail operations from riskier investment banking to avoid a repeat of the 2008 financial crisis and taxpayer-funded bailouts.

Lloyds’ share price has fallen into the red in today’s session, having lost 0.74 percent to 55.66p as of 13:19 GMT. The shares are underperforming the benchmark FTSE 100 index which has inched marginally higher and is currently 0.04 percent better off at 6,809.96 points. The group’s shares have lost nearly a quarter of their value over the past year, and are down by just under 24 percent in the year-to-date.

Sky News reported today that Lloyds was set to tell staff that Mark Grant, the lender’s managing director for its international corporate banking operations and chief executive of its North American business‎, will run its non-ring-fenced bank (NRFB). The unit, which will include complex ‎derivatives trades undertaken by Lloyds and not conducted in the European Economic Area, will be important part of providing a seamless service to major corporate clients of the bank.

The newswire noted that the FTSE 100 group was understood to have submitted an application to the Prudential Regulation Authority for‎ a licence for the new unit in the last few weeks. The lender hopes to have concluded the approval process within about 12 months, with the ring-fencing rules formally taking effect at the beginning of 2019.
Sources also told Sky News that in addition ‎to Grant’s appointment, the head of Lloyds’ corporate bank, Andrew Bester, would join the NRFB board as an executive director, while Morteza Mahjour, the group’s chief information officer, will become a non-executive director of the unit. The lender meanwhile has also started searching for independent board members to comply with governance requirements.
As of 13:45 GMT, Tuesday, 08 November, Lloyds Banking Group share price is 55.76p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Finance & Banking Stock Market