Lloyds Banking Group to leave Irish market

23 August 2010

Lloyds Banking Group is to give up control of Bank of Scotland Ireland (BoSI) due to the adverse economic conditions affecting the region.

Following a strategic review, the organisation concluded “that there was little opportunity for scalable growth in the future” and is now looking to transfer control to Bank of Scotland (BoS).

The move follows a decision made earlier in the year by Lloyds to close 44 retail branches of BoSI in Ireland.

Reports estimated that Lloyds’ retreat from the territory will impact approximately 800 staff with 35 expected to lose their jobs.

In a statement, Lloyds said: “The transfer of the BoSI business, including all of the strategic management and decision making activities relating to BoSI, will allow BoS to utilise its extensive operational and management capability ... [to] aid the efficient rundown of the existing lending portfolio.”

Lloyds has proposed that BoS collaborate with an independent service company to help wind down the business.

According to news reports, an estimated 44 per cent of loans belonging to the bank in Ireland are believed to be outstanding.

By Jim Ottewill

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