Lloyds Banking Group Plc's (LYG, LLOY.L) Chairman Sir Winfried Bischoff is set to step down from the position later this year as the British banking major is reading itself for privatization, according to media reports on Sunday. The announcement is expected to be made ahead of the groups shareholder meeting on Thursday.
Speculations have been rife about the retirement of investment banking veteran Bischoff for the past few months. Bischoff, age 72 years, has been chairman since September 2009 when he replaced Sir Victor Blank, who was blamed for the troubled takeover of HBOS during the 2008 banking crisis.
The company is said to begin a process to find a successor for Bischoff, with the name of Bank of England deputy governor Paul Tucker reportedly doing the rounds. He is expected to stay on until a successor is found.
The British lender, 40 percent owned partly by the government, has been grappling with tough times after the merger with HBOS amid a challenging economic situation. The government is set to start the process of selling its stake in the lender, expecting to finish the process ahead of the 2015 general elections.
The banking group is currently in the process of selling non-core assets, which is in line with the group's strategy of rationalizing its international presence and ensuring best value for shareholders.
Bischoff has been instrumental leading an extensive restructuring of the firm and bringing it back to profitability during his four-year tenure at Lloyds. In late-April, Lloyds Group reported a profit for the first quarter that soared from last year, reflecting a significant rise in net trading income and lower loan impairment charges.
Bischoff came out of retirement to join Lloyds in September 2009. He had retired in February 2009 from Citigroup, Inc. (C) while serving as its chairman. He joined Citigroup through the its acquisition of Schroders in 2000, when he was appointed Chairman of Citigroup Europe, and later became acting CEO of Citigroup in 2007.
Earlier, Bischoff was the Group Chief Executive and then Chairman of Schroders. He joined Schroders in 1966, and rapidly moved up the ranks to finally become its chairman. He is also a non-executive director of Eli Lilly and Co. (LLY) and McGraw Hill Cos., Inc. (MHP).
Bischoff has substantial experience of leading complex international boards in the UK, Asia and the US. His background spans a range of sectors, including banking and capital markets, finance and government regulation and public policy.
LYG closed Friday's regular trading session at $3.63, up $0.06 or 1.68% on a volume of 3.24 million shares.
On the London stock exchange, LLOY.L closed at 58.94 pence, up 0.88 pence or 1.52% on a volume of 213.89 million shares.
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