Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Lloyds to float TSB next month

Lloyds to float TSB next month

Lloyds is to spin-off TSB with the announcement of a public flotation of approximately 25% of the high street bank in June.   

‘TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues,’ said Anonio Horta-Osorio, group chief executive of Lloyds.   

‘It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector.’

Retail investors in the initial public offering will be granted one free share for every 20 they buy, up to a limit of £2,000 and subject to a one-year holding period following admission.

The bank said it will target a dividend by 2017. The new business will continue to use Lloyds IT and payment services.

The new bank will have a client base of around 4.5 million investors and 631 high-street branches, making it the seventh largest retail bank in the UK.

The management team, which has been in place since 2011, believe they will be able to deliver 40% to 50% balance sheet growth over the next five years.

‘Today is a significant milestone on our journey to create a major new competitive force in UK banking,’ said TSB Banking Group chief executive Paul Pester.

‘As we prepare for life as an independent, listed entity we are aiming to deliver strong, steady and sustainable growth, over the long-term. 

‘Our straightforward and simple approach to banking is designed to deliver the kind of bank people tell us they want:  every penny our customers deposit with us is used to support mortgages and loans for other TSB customers.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter