Lloyds Banking Group

Lloyds Banking Group is one of the most prominent London-headquartered financial institutions. Created by the takeover of HBOS by Lloyds TSB in the late 2000s, the Group is one of the so-called Big Four (banks) in Britain but it is also present in the international financial and banking markets, offering its products and services in other European countries, the United States, Asia and the Middle East. In addition to retail banking, Lloyds products and services also include mortgages, commercial & private banking, general insurance, pensions, investment banking and more. The HBOS brand ceased to be used after the acquisition. In contrast, the Group still uses the brands Lloyds Bank, Halifax, TSB and the Bank of Scotland.

Foundation and Early History

History of today’s Lloyds Banking Group dates back to 1765 when Birmingham manufacturer John Taylor (1704-1775) and iron dealer Sampson Lloyd (1699-1779) launched a private bank in Dale End in Birmingham. Taylor’s and Lloyd’s bank grew slowly - the first branch office opened only in 1864, nearly 100 years after the bank’s creation. However, the bank expanded significantly by the end of the 19th century, taking over a number of smaller banks. The trend continued in the 20th century and Lloyds became one of the largest banks in the UK and a part of the ‘elite’ group known as the Big Four.

Creation of Lloyds TSB Group plc

In 1995, Lloyds TSB Group plc was created as a result of the merger of Lloyds Bank and Trustee Savings Bank, commonly known as the TSB. The latter was founded in 1810 in the Scottish village of Ruthwell by Reverend Henry Duncan (1774-1846) with an aim to help the poor villagers save some money for hard times. A number of trustee savings banks emerged throughout Britain in the 19th and 20th century which, however, merged in the 1970s and 1980s, eventually forming the TSB Group plc which in turn has merged with Lloyds in the mid-1990s.

Acquisition of HBOS

In 2009, Lloyds TSB took over HBOS, a major banking and insurance company which was formed in 2001 by the amalgamation of the Bank of Scotland and Halifax plc. Lloyds TSB which was renamed as Lloyds Banking Group thus also acquired the Bank of Scotland and Halifax brands, HBOS affiliates overseas, and HBOS insurance and investment brands. When created, HBOS was envisioned to extend the Big Four to Big Five.