Lloyds to cut loan dependency
(24 January 2010 – Australia) Speculation is mounting that the incoming chief executive officer of Lloyds Banking Group, Antonio Horta-Osorio, will speed up asset sales in an effort to cut the bank’s dependency on loans from the financial markets.
Mr Horta-Osorio has launched an informal strategic review prior to his arrival to the bank.
This has fuelled market speculation that Mr Horta-Osorio will spped up asset sales and set aside billions more in provisions against bad debts.
The new CEO has held more than 20 "induction sessions" with the bank’s top managers, according to sources at the bank, with a further 20 sessions scheduled for the next two weeks.
According to the source, on the top of the meeting’s agenda is the profitability and the amount of capital deployed in each of the bank’s main business lines.
Mr Horta Osorio succeeds Eric Daniels as the bank’s chief executive.
Mr Horta-Osorio was poached last year from Santander UK, where he spearheaded the bank's acquisition-led transformation into Britain's fifth-biggest bank. He is in line for a salary and bonus package worth up to £8.3 million (A$13.4 million) a year from Lloyds - about 40 percent less than he was earning at Santander.
This has fuelled market speculation that Mr Horta-Osorio will spped up asset sales and set aside billions more in provisions against bad debts.
The new CEO has held more than 20 "induction sessions" with the bank’s top managers, according to sources at the bank, with a further 20 sessions scheduled for the next two weeks.
According to the source, on the top of the meeting’s agenda is the profitability and the amount of capital deployed in each of the bank’s main business lines.
Mr Horta Osorio succeeds Eric Daniels as the bank’s chief executive.
Mr Horta-Osorio was poached last year from Santander UK, where he spearheaded the bank's acquisition-led transformation into Britain's fifth-biggest bank. He is in line for a salary and bonus package worth up to £8.3 million (A$13.4 million) a year from Lloyds - about 40 percent less than he was earning at Santander.
Subscribe