Update on Verde Process

RNS Number : 8754Z

Lloyds Banking Group PLC

22 March 2012

 



22 March 2012

UPDATE ON VERDE PROCESS: LLOYDS BANKING GROUP CREATES 500 NEW ROLES TO SUPPORT VERDE BUSINESS

Lloyds Banking Group continues to make good progress on its EC mandated retail and commercial business divestment (Verde), and is today announcing the key operational sites which will join the Verde business.

These sites, which will provide telephony, banking operations and mortgage centre support to the Verde business, are in five UK locations, in Gloucester, Livingston, Birmingham, Sunderland and Swansea.  Around 1,400 colleagues in these locations will become part of the Verde business, joining around 5,000 branch staff.

The Group is also announcing today the creation of around 500 new roles in the Verde business and the start of the recruitment process to fill these roles.

Alison Brittain, Group Director Retail Division said: "This represents the next step in building the Verde business following last year's branch network and management team announcement, and marks a significant milestone in building a fully operational challenger bank, well positioned for a successful future."

It remains our preference to sell the Verde business to The Co-operative Group.  In addition the Group is continuing to prepare for a divestment through an Initial Public Offering (IPO).

We continue to progress discussions with the Co-operative Group.  However, given that this is a substantial business and a highly complex transaction the Group now anticipates providing a further update in Q2 2012.

The Group remains on track to complete the transfer of the business before the end of 2013 in line with the EC mandated timescale.

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For further information:

Investor Relations

Kate O'Neill                                                                            [phone]

Managing Director, Investor Relations

Email: kate.o'[e-mail]

Corporate Affairs

Matthew Young                                                                      [phone]

Group Corporate Affairs Director

Email: [e-mail]

FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the business, strategy and plans of the Lloyds Banking Group, its current goals and expectations relating to its future financial condition and performance.  Statements that are not historical facts, including statements about the Group or the Group's management's beliefs and expectations, are forward looking statements.  By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.  The Group's actual future business, strategy, plans and/or results may differ materially from those expressed or implied in these forward looking statements as a result of a variety of risks, uncertainties and other factors, including, without limitation, UK domestic and global economic and business conditions; the ability to derive cost savings and other benefits including, without limitation, as a result of the integration of HBOS and the Group's simplification programme; the ability to access sufficient funding to meet the Group's liquidity needs; changes to the Group's credit ratings; risks concerning borrower or counterparty credit quality; instability in the global financial markets including Eurozone instability; changing demographic and market related trends; changes in customer preferences; changes to regulation, accounting standards or taxation, including changes to regulatory capital or liquidity requirements; the policies and actions of governmental or regulatory authorities in the UK, the European Union, or jurisdictions outside the UK, including other European countries and the US; the ability to attract and retain senior management and other employees; requirements or limitations imposed on the Group as a result of HM Treasury's investment in the Group; the ability to complete satisfactorily the disposal of certain assets as part of the Group's EU state aid obligations; the extent of any future impairment charges or write-downs caused by depressed asset valuations; exposure to regulatory scrutiny, legal proceedings or complaints, actions of competitors and other factors.  Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors together with examples of forward looking statements.  The forward looking statements contained in this announcement are made as at the date of this announcement, and the Group undertakes no obligation to update any of its forward looking statements.

 

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