Antonio Horta-Osorio
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Lloyds boss promises 'seamless' launch of TSB

3 September 2013 Last updated at 16:59 BST

Millions of customers who are being moved from Lloyds to a new TSB Bank are being promised a "seamless transition" by the banking group's boss.

Antonio Horta-Osorio, chief executive of Lloyds Banking Group, told the BBC's Business Editor Robert Peston that the only change they would notice would be a change of name.

Lloyds is moving the customers of 631 branches to the new brand.

"It's actually a very exciting project... I think this is unparalleled not only in the UK, but in Europe as well."

He said that this was a huge project for Lloyds Banking Group, costing between £1.3bn and £1.5bn before tax.

"It is quite painful" he continued, "Lloyds has 30-million customers as a whole, therefore to lose five-million customers is to lose around a sixth".

Mr Horta-Osorio stressed that TSB, which will be launched on Monday, was a "completely clean bank" having no legacy issues - such as a huge bill from PPI compensation - and had the same protection for savers as other High Street banks.