Lloyds Banking Group will divide its three units into five as part of a restructuring plan, Reuters reported Tuesday (March 15).
The report said CEO Charlie Nunn has plans to reconfigure the U.K. bank’s executive team, while also investing $5.2 billion over the next five years in hopes of digitizing Lloyds and upping its fee income in sectors like wealth management.
The memo said two of Lloyds top executives will leave the company: group director for retail Vim Maru, and commercial banking head David Oldfield, who will step down next year.
See also: Lloyds Plans To Buy Embark Group for $542M
Manu has been with Lloyds for more than a decade, Reuters said, and has been mentioned a possible candidate for CEO. He said in his own memo that this seemed like a good time to move on.
As for the split, Lloyds will divide its retail division into two divisions: one dealing with consumer lending and led by Lloyds’ Russell Galley and Jo Harris, the other focused on current accounts and savings and overseen by Jas Singh, another Lloyds employee.
Lloyds’ commercial business will be split into two groups as well: one focusing on larger clients, the other handling small businesses. Oldfield will oversee the restructuring of these branches while the bank searches for new leadership, the report said.
Read more: Lloyds Bank to Shutter 48 Offices
In October 2021, Lloyds announced plans to close 48 branches in England and Wales, following an earlier closure of another 44 branches.
Last year also saw the lender acquire Embark Group for $542 million in a bid to enhance its status in the retirement and investment sector. It’s part of Lloyds’ broader strategy to widen the scope of its investment and wealth products. The bank has said it is aiming for a “top-three position” in the individual pensions and retirement drawdown field by 2025.
