Lloyds bank chief Eric Daniels to step down

Lloyds Banking Group boss Eric Daniels plans to retire from the bank in a year's time, the taxpayer-backed bank revealed today.

Mr Daniels - who has come under fire following the bank's troubled rescue of HBOS at the height of the financial crisis - will step down after leading the group as chief executive since June 2003.

Lloyds, which is 41% owned by the taxpayer, said it will launch a search internally and externally for his successor.

Lloyds did not give a date for his departure, but said he aimed to leave in a year's time.

Mr Daniels, 59, will continue in the post until a replacement is appointed, it added.

The American's planned departure will mark a clean sweep at the top of the UK's major banks since the sector meltdown in 2008 and ends mounting speculation over his position at the helm.

Barclays announced earlier this month that investment banking head Bob Diamond would take over from John Varley as chief executive next year, while HSBC said on the same day that its executive chairman Stephen Green was leaving to join the Government as trade minister.

Royal Bank of Scotland's former chief Sir Fred Goodwin quit soon after the bank's mammoth State bail-out.

Lloyds chairman Sir Win Bischoff paid tribute to Mr Daniels on announcing the move.

He said: "The entire board and I are grateful to Eric for his leadership as chief executive since June 2003, particularly since the announcement of the acquisition of HBOS in September 2008.

"The successful integration of the two companies and the sooner-than-expected return to profitability of the enlarged Lloyds Banking Group are testament to his disciplined and vigorous leadership during a time of unprecedented financial turmoil."

Mr Daniels said it had been "a tremendous honour" to head the retail banking giant.

"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."