Lloyds and HBOS become Lloyds Banking Group today

19 January 2009 / by Rachael Stiles
Lloyds TSB and HBOS have now merged to become Lloyds Banking Group, the biggest bank in the UK with more than 30 million customers.

One in three consumers in Britain are now banking with Lloyds Banking Group, which changed its name on Friday and commences trading under the new name on the London Stock Exchange today, and the New York Stock Exchange as of tomorrow.

The company will continue to use the ticker code LLOY on the Main Market of the London Stock Exchange and LYG on the New York Stock Exchange.

Lloyds Banking Group shares had gained 5.2 per cent when the markets opened this morning, now standing at 103.5p.

The taxpayer owns a significant share in the newly-formed group as part of the Treasury's bail-out plan, which might have been dependent on the two merging.

Critics of the merger argued that HBOS could have survived on its own with a cash injection from the Government, but the Prime Minister warned that this was not a certainty if HBOS remained an independent entity.

The merger has presented the group with a "once in a lifetime opportunity", it said in a statement released on Friday, an opportunity "to implement a way of doing business across all our businesses that’s proven to deliver better financial services for our customers.

"Successfully implementing this approach will provide us with a strong platform from which we can grow our business and will be our first steps in realising our global ambitions." it said.

As yet, there has been no confirmation of job losses at the superbank as it begins a three-year integration period; Lloyds TSB reportedly said that it has been trading "satisfactorily" since November, but admitted HBOS has been performing less well amongst ongoing difficult market conditions.

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