Change at the top for Lloyds bank

LONDON - Sir Victor Blank today said he will retire as chairman of Lloyds Banking Group before the firm's annual meeting next year.

Sir Victor - who said it was "the right time for the group to appoint a new chairman" - has faced criticism over Lloyds' rescue takeover of HBOS last year.

Lloyds will be loss-making this year as a result of soaring bad debts at HBOS but Sir Victor defended the deal today.

He said: "I will continue working until my successor is appointed to ensure the successful integration of the two banks. This remains - in the medium term - a unique value-enhancing opportunity."

Lord Leitch, who was appointed deputy chairman of Lloyds with immediate effect following a board meeting today, said Sir Victor was a "first-class chairman".

"We are very sad about Sir Victor's personal decision to retire, although we respect and understand his reasons for it," he said.

HBOS's losses on corporate loans reached £7 billion last year - meaning the hit from this business alone is likely to be at least £11 billion.

- INDEPENDENT