Lloyds names interim chief executive

Lloyds Banking Group has said it expects chief executive António Horta-Osório to be back in his job by the end of the year, but also named an interim group chief executive should the planned return fall through.

In a statement, the bank said Horta-Osório was making “good progress in his recovery” from fatigue due to overwork, which caused him to take abrupt sick leave on 2 November.

The Board agreed David Roberts, a non-executive director and chairman of the Risk Committee, will take over Horta-Osório’s position if his return is delayed beyond the end of the year.

“We are looking forward to his return at the end of the year. However, we recognise it is important that we formalise the contingency arrangements if António’s return is delayed,” said Lloyds chairman Sir Win Bischoff.

The decision is likely to fuel concerns that Horta-Orsorio may not return to his full-time leadership post soon.

Further heightening these fears, Nathan Bostock, head of Restructuring and Risk at Royal Bank of Scotland (RBS), said he would not be taking over as group executive director from Truett Tate as announced in July.

Bostock, who worked under Horta-Osório at Santander and was expected to join Lloyds to work with him in 2012, will instead stay with RBS.