Shares in Lloyds Banking Group increased by more than four per cent on opening this morning as the bank announced the appointment of a new chairman.

The increase in Lloyds’ share value suggests that investors see the announcement as a positive step following the bank’s takeover of HBOS, which has seen the group shed thousands of jobs and its share price drop dramatically.

Sir Win Bischoff is to become chairman at Lloyds Banking Group in September – he was previously chairman of investment banking business Citigroup.

Commenting, Sir Win said: “Lloyds Banking Group has a proud history and an excellent customer franchise, and I am both honoured and pleased to accept the Chairmanship of its board.

“Short term we face many challenges but, in the longer term, the Group is well positioned to deliver significant benefits to its customers, shareholders, employees and the public.”

Sir Win will be taking over from Sir Victor Blank who agreed to step down as chairman earlier this year as shareholders voiced their anger over Blank’s decision over the HBOS takeover.

© Fair Investment Company Ltd