The chief executive of Lloyds TSB, the UK’s largest retail banking group, is to retire within 12 months.

Eric Daniels who presided over the bank’s mid-crisis takeover of HBOS had been chief executive of Lloyds since June 2003 and will continue in the roll until a successor is found.

Daniels’ announcement follows the decision earlier this month by Barclays chief executive, John Varley, to retire and the end of Stephen Green’s tenure as chairman of HSBC, after he took-up the role of Minister of State for Trade and Investment in the coalition government.

Daniels said: “I am grateful to have been given the opportunity to create the new Group and to set Lloyds well on its way to becoming the best bank for all our stakeholders including our customers, shareholders and employees.”

Lloyds Group chairman, Sir Win Bischoff, said the successful integration of HBOS into Lloyds and the ‘sooner than expected return to profitability of the enlarged Lloyds Banking Group’ were testament to Daniels’ ‘disciplined and vigorous leadership during a time of unprecedented financial turmoil.’

In morning trading on 21 September, Lloyds Group shares were up 1.04 points at 78.50.

A new chief executive is likely to be in place by the time the group’s annual results are published early next year, with expectations that the government would begin to sell its stake in the group.

© Fair Investment Company Ltd