Monday 6 July 2020 8:55 am

Lloyds chief executive Antonio Horta-Osorio to step down next year

Lloyds chief executive Antonio Horta-Osorio will step down in 2021 after a decade at the helm, the bank said this morning. 

The lender also announced the appointment of industry veteran Robin Budenberg as its new chairman, who will take over from Lord Norman Blackwell next year. 

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After joining in 2011, the Portugese executive led the turnaround at the bank in the aftermath of its government rescue during the global financial crisis, with the lender returning fully to private hands in 2017.

Horta-Osorio said he was leaving Lloyds with “mixed emotions”. 

“I have been honoured to play my part in the transformation of large parts of our business. I know that when I leave the group next year, it has the strategic, operational and management strength to build further on its leading market position,” he said. 

Lloyds is planning for Horta-Osorio to retire in June 2021, the bank said. Budenberg will join the board of the lender in October, before taking over as chairman early next year. 

Shares in Lloyds rose as much as 2.34 per cent in morning trading following the announcement. 

“Despite the multiple external headwinds that the bank has faced during Horta-Osorio’s tenure, he has delivered a successful strategy overhaul as well as substantive transformation from an organisational efficiency perspective,” said John Cronin, banking analyst at Goodbody.

“While he will be sorely missed, it is not surprising that he is planning to move on after what will be 10 years at the helm come 2021,” Cronin added. 

Blackwell thanked Horta-Osorio for his “outstanding contribution” to “first turning round and then leading the strategic development of the group over the last decade”.

“His personal commitment and strong vision have driven a period of massive and successful change in the group, restoring Lloyds to its preeminent position… as the UK’s leading retail and commercial bank,” he added. 

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Blackwell said he was “delighted” with the appointment of Budenberg as his successor. 

“His knowledge of the group combined with his broad experience in both financial services and other strategic advisory roles give him an outstanding background to provide the board leadership required to support the continued transformation of the group,” he said. 

“Lloyds will play a vital role as Britain recovers from the current crisis. It is a great honour and challenge to take on the role of Chair at this time and I hope to continue Norman and Antonio’s work,” Budenberg said.

Budenberg built his career in investment banking at SG Warburg and UBS, and helped advise the UK government on the bail out of the banking industry following the financial crisis. 

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He later led the government’s UK Financial Investments, overseeing the government’s investment in lenders including Lloyds.

Budenberg is currently chairman of the Crown Estate and London chairman of private banking group Centerview Partners. Lloyds said he would step down from his role at Centerview, but would remain on the board of the Crown Estate.