By Patrick Jenkins and Banking Editor
Ant?nio Horta-Os?rio, the chief executive of Lloyds Banking Group who joined the part-nationalised lender at the beginning of the year, is poised to step back temporarily from his role as chief executive due to health reasons.
Mr Horta-Os?rio, who joined the bank with much fanfare from Spain?s Santander, has been ordered by his doctors to take a break from his post on grounds of stress. Lloyds, which is part-owned by the UK government, said on Wednesday that he was expected to return ?before then end of the year?.
The bank?s board is to meet later on Wednesday to agree on interim arrangements. Tim Tookey, finance director, resigned over the summer, and is due to leave the bank in the coming months.
However, the board is expected to ask Mr Tookey to assume the role of acting chief executive, partly in the absence of any credible alternative. Mr Horta-Os?rio conducted a clear-out of senior executives shortly after his arrival, with no replacement for Mr Tookey yet identified, and his one big hire from outside – Nathan Bostock from Royal Bank of Scotland – is yet to arrive.
When Lloyds poached Mr Horta-Os?rio from Santander late last year, it was seen as a coup, giving a real boost to the government?s chances of being able to rebuild the troubled bank and shed its 41 per cent shareholding at a profit. Since then, however, amid the deepening financial crisis, the value of Lloyds stock – like that of most other banks – has plummeted.
Lloyds had substantial exposure to the troubled Irish economy, which it has aggressively wound down but, unlike many eurozone rivals, it is strongly capitalised.
Colleagues of Mr Horta-Os?rio say he is an expert banker but an intense character, obsessed with his job, potentially triggering the health problems.
Shares in Lloyds were 3.4 per cent lower at 29.6p in early London trading.
? The Financial Times Limited 2011