Lloyds advised to strengthen TSB balance sheet

Artist's impression of a new TSB branch TSB is due to be floated on the stock market by Lloyds in 2014

Related Stories

The Office of Fair Trading (OFT) has told Lloyds Banking Group to strengthen the balance sheet of its newly-launched TSB business.

The advice came in recommendations made to the Treasury on the planned sales of bank branches by Lloyds and Royal Bank of Scotland (RBS).

The OFT approved both sales, but said providing TSB with additional capital would help increase its market share.

Lloyds said it would provide TSB with an extra £40m.

The BBC's business editor Robert Peston says the OFT's approval is significant because it clears the decks the return of a chunk of Lloyds to the private sector, as well as the sales of the bank branches, required by European competition rules.

Lloyds is still 39% owned by the government following the bank bailouts at the height of the financial crisis.

The government has an 81% stake in RBS.

Lloyds said the extra money given to TSB would help enable future customer acquisitions and develop its branch network, which currently numbers more than 600 branches.

The bank also said it would enhance TSB's profitability by over £200m over four years.

TSB is expected to be floated on the stock market next year, marking the end of Lloyds' branch sale, named Project Verde.

Meanwhile RBS is currently in the process of selling 315 branches, named Project Rainbow, to one of three bidders.

More on This Story

Related Stories

More Business stories



  • Bad resultsBlame game

    The best excuses to use when exam results don't make the grade

  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?

  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack

  • Lady AlbaGoing Gaga Watch

    Social media's use ahead of the independence referendum

  • Pro Israel activists hold a banner reading 'Against Anti-Semitism and hate of Israel' at a demonstration as part of Quds Day in Berlin, Germany, 25 July 2014'Rising tide'

    Do statistics support claims that anti-Semitism is increasing?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.