Lloyds TSB Group Essay ⋆ Business Essay Examples ⋆ EssayEmpire

The Lloyds TSB Group came from a merger of Lloyds Bank and the Trustee Savings Bank. Lloyds Bank itself was one of the oldest banks in the United Kingdom and was established as a company in 1765—at that stage providing a private banking service—called Taylors and Lloyds in Dale End, Birmingham, in central England, taking its name from its founders John Taylor, a button maker, and Sampson Lloyd II, an iron manufacturer and dealer. Two sons of the original partners established Barnetts Hoares Hanbury and Lloyd in Lombard Street in London. It was not until 1864 that the bank opened its first public bank branch in Oldbury, then six miles west of Birmingham (but now a suburb of Greater Birmingham).

Gradually Lloyds Bank grew, started taking over other businesses, and formed Lloyds Bank (France) in 1911 from Armstrong and Co., which they had just bought out. In 1914 they took control of the Wilts and Dorset Bank, and four years later bought the Capital and Counties Bank. They also took over Fox, Fowler and Company of Wellington, Somerset, the last private firm in Britain to issue its own banknotes (which it did for the last time in 1921). Lloyds Bank had deposits of £1,094 million in 1951, and £1,654 million in 1966.

In 1918 Lloyds Bank expanded into South America with the purchase of the London and River Plate Bank, which was later merged with the London and Brazilian Bank to form the Bank of London and South America, which in 1986 was fully merged into Lloyds Bank. This saw Lloyds Bank have a heavy financial interest in Argentina as well, being largely used by its British community that controlled many of the businesses, at least until the 1940s. Lloyds Bank, through the National Bank of New Zealand, and the Rural Bank, which it took over in 1994, also had an important role in New Zealand. By this time it had already established its life assurance company, Lloyds Abbey Life, and in 1995 it bought the Cheltenham and Gloucester Building Society, making it a major lender in the British mortgage market. From 1930 until 1987, the Lloyds Bank Review provided generations of high school and university students with information on banking and economic reform proposals.

By contrast, the Trustee Savings Banks had been established from 1810 as part of the framework encouraged in Britain during the Napoleonic Wars to promote thrift. However, in the early 19th century many banks were not stable, and investors were worried about their funds. As a result, the Trustee Savings Banks established a system of independent trustees to guarantee the management of the bank, which was how it had achieved its name. In 1919 the banks had £100 million in deposits, which rose to £162 million by 1929, and £292 million by 1939. After World War II, plans were introduced to help unify the system. With changes being made in the inter–savings bank clearing in 1955, by 1973 there were 73 different savings banks with 1,549 branch offices. Finally merger arrangements were made, and in 1975 the network was whittled down to 19 independent banks, which in 1985 were finally merged to form the TSB Bank plc.

In 1995 the Trustee Savings Bank merged with Lloyds Bank and they formed Lloyds TSB. It still uses the black horse set in a green frame that has been the symbol of the bank for many years. It currently employs 74,000 people and has a revenue of £16,874 million (2007), with net income of £3,321 million (2007), making it the fifth-largest banking group in the United Kingdom. As well as banking through Lloyds TSB Bank in England and Wales, and Lloyds TSB Scotland in Scotland, and through Cheltenham and Gloucester Building Society, it also runs the Scottish Widows Bank. In insurance and investments, it runs its own Lloyds TSB Insurance Services Ltd. and Scottish Widows; and in wholesale and international banking, it runs the Lloyds TSB Corporate Markets, Lloyds TSB Commercial Finance, Blackhorse, and an offshore banking arm. Involved in sponsorship of many events and charities, Lloyds TSB was appointed the first Official Partner for the 2012 Olympic Games to be held in London. In late 2008 Lloyds TSB looked forward to its merger with HBOS, which was to create Britain’s biggest High Street bank called Lloyds Banking Group.

Bibliography:

Great Britain, Lloyds TSB Group Union (LTU) Technology Modernisation Project: Case Study (BERR, 2007);
Kelly, “Breaking the Code: An Interview with Sir Brian Pitman, Chairman, Lloyds TSB Bank,” Long Range Planning (v.33/1, 2000);
Roger Orsingher, Banks of the World: A History and Analysis (Macmillan, 1967);
S. Sayers, Lloyds Bank in the History of British Banking (Oxford University Press, 1957);
R. Winton, Lloyds Bank 1918–1969 (Oxford University Press, 1982).

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