with lloyd s of london lloyd s register or lloyd s list . lloyds banking group plc type public limited company traded as lse lloy nyse lyg industry banking financial services founded 1995 ; 21 years ago 1995 lloyds tsb group headquarters 25 gresham street london united kingdom area served worldwide key people lord blackwell chairman ant nio horta os rio group chief executive products retail banking commercial banking private banking general insurance life insurance pensions investment banking revenue 11.8321 billion 2015 1 operating income 2.034 billion 2015 1 net income 0.956 billion 2015 1 total assets 806.688 billion 2015 1 total equity 41.234 billion 2015 1 number of employees 88 000 2016 2 subsidiaries lloyds bank plc bank of scotland plc scottish widows lloyds development capital agricultural mortgage corporation black horse lex autolease website www.lloydsbankinggroup.com lloyds banking group plc is a major british financial institution formed through the acquisition of hbos by lloyds tsb in 2009 . the group s history stems from the founding of the bank of scotland in 1695 by the parliament of scotland before the act of union which is the second oldest bank in the united kingdom . the group s headquarters is located at 25 gresham street in the city of london and its registered office is on the mound in edinburgh . lloyds banking group s activities are organised into retail banking including mortgages and sole traders ; commercial ; life pensions & insurance ; and wealth & international . lloyds has extensive overseas operations in the us europe the middle east and asia . following the takeover the group stopped using the name hbos publicly . the halifax brand products and pricing were discontinued in scotland until reestablished in 2013 . the halifax and lloyds bank brands are used in england and wales and the bank of scotland brand is used in scotland each offering different products and pricing . lloyds banking group s ceo ant nio horta os rio told the banker we will keep the different brands because the customers are very different in terms of attitude . 3 lloyds banking group is listed on the london stock exchange lse and is a constituent of the ftse 100 index . it had a market capitalisation of approximately gb 57.7 billion as of 4 march 2014 the 7th largest of any lse company . 4 it has a secondary listing on the new york stock exchange where it has a market capitalisation value of us 34.45 billion . 5 at the end of october 2015 hm treasury held a shareholding of just under 10 % through uk financial investments . 6 contents 1 history 1.1 origins 1.1.1 lloyds tsb merger 1.1.2 acquisition of hbos 1.2 october 2008 to january 2009 1.3 february to june 2009 1.4 june 2009 to present 1.5 divestment 2 divisions and subsidiaries 2.1 retail 2.2 commercial banking 2.3 insurance 2.4 consumer finance 3 sponsorships 4 awards and recognition 5 controversies 5.1 money laundering 5.2 tax avoidance 5.3 complaints via the financial ombudsman service 5.4 sharia account 6 references 7 external links history edit origins edit for more details on this topic see lloyds bank and hbos . lloyds bank was one of the oldest banks in the uk tracing its establishment to taylors and lloyds founded in 1765 in birmingham by button maker john taylor and iron producer and dealer sampson lloyd ii . 7 through a series of mergers lloyds became one of the big four banks in the uk . bank of scotland which originated in the 17th century is the second oldest surviving uk bank after the bank of england . in 2001 a wave of consolidations in the uk banking market led the former halifax building society which originated in 1853 to agree to a 10.8 billion merger with bank of scotland . 8 trustee savings bank tsb can trace its roots back to the first savings bank founded by henry duncan in ruthwell dumfriesshire in 1810 . tsb itself was created in 1985 by an act of parliament that merged all the remaining savings banks in england & wales as tsb bank plc and in scotland except airdrie savings bank as tsb scotland plc. 9 lloyds tsb merger edit park row leeds branch of lloyds bank with a sculpture of the black horse called cancara in the foreground in 1995 lloyds bank merged with tsb forming lloyds tsb group plc. 10 in 2000 the group acquired scottish widows a mutual life assurance company based in edinburgh in a deal worth 7 billion . 11 this made the group the second largest uk provider of life assurance and pensions after prudential . in september the same year lloyds tsb purchased chartered trust from standard chartered bank for 627 million to form lloyds tsb asset finance division which provides motor retail and personal finance in the united kingdom under the trading name black horse . 12 lloyds tsb continued to take part in the consolidation making a takeover bid for abbey national in 2001 which was later rejected by the competition commission . 13 in october 2003 lloyds tsb group agreed on the sale of its subsidiary nbnz holdings limited comprising the group s new zealand banking and insurance operations to australia and new zealand banking group . 14 in july 2004 lloyds tsb group announced the sale of its business in argentina to banco patagonia sudameris s.a. 15 and its business in colombia to primer banco del istmo s.a. . 16 on 20 december 2005 lloyds tsb announced that it had reached an agreement to sell its credit card business goldfish to morgan stanley bank international limited for 175 million . 17 in 2007 lloyds tsb announced that it had sold its abbey life insurance division to deutsche bank for 977 million . 18 acquisition of hbos edit head office of the bank of scotland at the mound edinburgh . on 17 september 2008 the bbc reported that hbos was in takeover talks with lloyds tsb in response to a precipitous drop in hbos s share price . 19 the talks concluded successfully that evening with a proposal to create a banking giant which would hold a third of uk mortgages . 20 an announcement was made on 18 september 2008 . 21 22 on 19 november 2008 the new acquisition and government preference share purchase was agreed by lloyds tsb shareholders . 23 hbos shareholders overwhelming approved the deal on 12 december . 24 lloyds tsb group changed its name to lloyds banking group upon completion of the takeover on 19 january 2009 . 25 on 12 february 2009 eric daniels the ceo of the group was questioned about the banking crisis during a session of the treasury select committee of the house of commons . one of the key issues concerned lloyds takeover of hbos and the amount of due diligence carried out before the acquisition . daniels said that a company would always like to do more due diligence on another company but there are legal limits on how much is possible before an actual acquisition . losses were slightly more than the 10 billion originally identified by the due diligence owing to write offs of property loans because of falling property prices and the lack of demand for it . the then chairman of lloyds sir victor blank said in august 2009 that losses had been at the worst end of expectations and that the lloyds board was surprised by the speed at which the losses which were caused by the unexpectedly sharp contraction of the world economy in late 2008 and early 2009 happened . 26 this position was confirmed by archie kane a senior lloyds executive in scotland in evidence to the scottish parliament s economy committee in december 2009 . 27 on 13 february 2009 lloyds banking group said that the losses at hbos were greater than had been anticipated at around 10 billion . the share price of lloyds banking group fell 32 % on the london stock exchange carrying other bank shares with it . 28 october 2008 to january 2009 edit see also 2008 united kingdom bank rescue package and 2009 united kingdom bank rescue package the aylesbury branch of lloyds bank formerly the bucks and oxon union bank . on 13 october 2008 prime minister gordon brown announced a government plan for the treasury to invest 37 billion us 64 billion 47 billion of new capital into major uk banks including royal bank of scotland group lloyds tsb and hbos to avert a collapse of the financial sector . 29 30 barclays avoided taking a capital investment from the uk government by raising capital privately and hsbc moved capital to its uk business from its other businesses overseas . 31 it was later confirmed that lloyds tsb would have been required by the financial services authority fsa to take additional capital from the government if it had not taken over hbos . 32 after the recapitalisations and lloyds acquisition of hbos the uk government held a 43.4 % stake in lloyds banking group . 33 february to june 2009 edit in february 2009 after it became apparent that the recession would be deeper than originally anticipated the fsa was instructed to stress test the banks against a severe economic downturn . the fsa stated that the assumptions underlying the stress test were not intended to be a forecast of what was likely to happen but to simulate a near catastrophic economic scenario . these assumptions included a peak to trough fall in uk gross domestic product gdp of over 6 % with no growth until 2011 and returning to trend rate growth in 2012 ; a rise in uk unemployment to just over 12 % ; a 50 % peak to trough fall in uk house prices ; a 60 % peak to trough fall in uk commercial property prices . 34 the conclusion from this exercise was that lloyds would need additional capital if such a scenario ever occurred . because the wholesale funding markets were effectively closed at the time in march 2009 lloyds made a deal with the uk government consisting of two elements redemption of preference shares . the 4 billion of preference non voting shares held by ukfi were repaid on 8 june 2009 following the issue of new ordinary shares this avoided the payment of 480 million annual interest to the treasury and allowed lloyds to resume payment of dividends when profits allowed . these new ordinary shares were initially available to existing shareholders through an open offer at 38.43 pence that closed on 5 june 2009 87 % were taken up . the remaining 13 % were placed in the market on 8 june 2009 at 60 pence . this open offer and placing was underwritten by the treasury ; if none of these new ordinary shares had been bought by existing shareholders or the open market the government as underwriters of the deal would have bought them and their shareholding would have increased to a maximum of 65 % . this did not happen ; the government s holding remained at 43.4 % and lloyds became the first european bank to repay government credit crunch investment . 35 following the government s 43.4 % participation in june s open offer the average buying price of the government s total shareholding was 122.6 pence . 36 asset protection scheme . lloyds agreed in principle to enter the government s asset protection scheme to insure it against potential future losses on previous loans primarily on the old hbos portfolio . the fee for this would have been paid for by the issue to the government of new b non voting shares which could have increased the government holding to a maximum of c. 62 % or higher if the government had bought all the ordinary shares issued to redeem the preference shares . 37 june