LLOYDS BANKING GROUP ANNOUNCES INTENTION TO TRANSFER ITS HOLDINGS IN HBOS PLC TO LLOYDS TSB BANK PLC

RNS Number : 6810E
Lloyds Banking Group PLC
23 December 2009
 
























127/09    23 December 2009

LLOYDS BANKING GROUP ANNOUNCES INTENTION TO TRANSFER ITS HOLDINGS IN HBOS PLC
TO LLOYDS TSB BANK PLC 

Lloyds Banking Group plc ("Lloyds Banking Group") today announces its intention
to adjust the Group's corporate structure and transfer its current holding in
HBOS plc ("HBOS") to Lloyds TSB Bank plc ("Lloyds TSB"). Following this move
Lloyds TSB will become the immediate parent of HBOS. Lloyds Banking Group will
continue to directly own Lloyds TSB but, as a result of this transaction will
own HBOS indirectly, as Lloyds TSB will be the immediate parent of HBOS. 




This transfer follows a review by management of the structure of Lloyds Banking
Group and a programme to develop and implement a legal entity structure that is
efficient from a financial, regulatory and capital perspective.  It also
streamlines reporting and disclosure requirements, reduces costs and improves
capital efficiencies.  The capital ratios of Lloyds Banking Group will not
change as a result of this restructure. 




The proposed transfer of HBOS is not expected to have any impact upon staff or
customers, whose relationships with the legal entities in the Lloyds Banking
Group will remain unchanged as a result of this transfer.  There is also no
intention to alter the banking licences in operation within Lloyds Banking
Group.  It is the current intention that both Lloyds TSB and Bank of Scotland
plc will retain their banking licences. 




The proposed transfer has been approved by the Financial Services Authority,
and the Group currently expects it to become effective on 1 January 2010. 







- END -

 
 




For further information:




Investor Relations

Michael Oliver    +44 (0) 20 7356 2167

Director of Investor Relations

Email: michael.oliver@ltsb-finance.co.uk




Douglas Radcliffe    +44 (0) 20 7356 1571

Head of Investor Relations

Email: douglas.radcliffe@ltsb-finance.co.uk







Media Relations

Mark Elliott    +44 (0) 131 1243 5572

Head of Media Relations

Email:  mark.elliott2@lloydsbanking.com 






















FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the
business, strategy and plans of the Lloyds Banking Group, its current goals and
expectations relating to its future financial condition and performance. By
their nature, forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the
future.  The Group's actual future results may differ materially from the
results expressed or implied in these forward looking statements as a result of
a variety of factors, including UK domestic and global economic and business
conditions, the ability to derive cost savings and other benefits as well as to
mitigate exposures from the acquisition and integration of HBOS, risks
concerning borrower credit quality, market related trends and developments,
changing demographic trends, changes in customer preferences, changes to
regulation, the policies and actions of Governmental and regulatory authorities
in the UK or jurisdictions outside the UK, including other European countries
and the US, exposure to regulatory scrutiny, legal proceedings or complaints,
competition and other factors. Please refer to the latest Annual Report on Form
20-F filed with the US Securities and Exchange Commission for a discussion of
such factors.  The forward looking statements contained in this announcement
are made as at the date of this announcement, and the Group undertakes no
obligation to update any of its forward looking statements. 





This information is provided by RNS
The company news service from the London Stock Exchange
 
END