Dubai, 29th March 2012
 
Lloyds Banking Group has today announced that it has agreed to sell its onshore UAE presence to HSBC. This comprises its retail, commercial and corporate banking businesses, which operate through one branch in Dubai.  This proposed sale includes all customer accounts and infrastructure. The sale is subject to regulatory approval.

The sale does not include Lloyds Banking Group's International Wealth business in the UAE, as the Group has made a commitment to continue to invest in its Wealth business in the region to realise its growth potential. This includes its Private Banking branch in the DIFC and its offshore International Personal Banking service, which comprises its International Accounts and other associated offshore services.

Commenting on today's announcement, Richard Musty, Country Head in the UAE, said: "Lloyds TSB has a long and successful history in Dubai and we are proud of what we have achieved and the performance of our business locally.  The Group's decision to sell the onshore UAE presence follows its Group Strategic Review, announced on 30 June 2011, when it committed to simplify its international footprint."

He added: "We remain committed to ensuring the very best customer service and care and customers will see no change in our operations during this time. We also have an enviable pool of talented professionals who remain one of our most important assets.  We are therefore also committed to keeping our employees fully updated throughout the transaction process. The quality of our customer base, and in particular our colleagues, was a key determining factor for HSBC in deciding to purchase this business from us."

The Group undertook a strategic review of its operations in the UAE and this review determined that a sale of the onshore UAE presence would provide the best outcome for the Group and its employees, customers and shareholders.

Following a competitive sales process, HSBC was selected. HSBC's standing as a well-known and highly regarded financial institution was an important consideration for the Group, as it wanted to ensure that customers affected by its decision to sell would continue to receive the same high quality service from the purchaser as they have received to date.

Lloyds Banking Group currently employs 256 people in the Region of which 23 currently work in its International Wealth and Wholesale operations and will be unaffected by this transaction. Until discussions with HSBC conclude and regulatory approval is received, it is not possible to state how many of the 233 employees who work in the onshore business will secure a role with HSBC.

Richard Musty concluded "We remain fully committed to our International Wealth business in the UAE which will continue to employ a highly professional and experienced team currently based in the region. We have clear growth plans for it as we firmly believe we have the right to win in the Middle East market and we will invest further in this business to help this business grow in the years ahead."

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About Lloyds TSB Middle East
The main branch of Lloyds TSB Middle East is in Jumeirah, housed in a custom built landmark building, located on Al Wasl Road opposite Safa Park. The bank also has a Customer Service Center located at the Arabian Ranches community centre. Lloyds TSB Middle East employs over circa 300 people providing a full range of financial services including: Personal Banking, Commercial Banking, Corporate Banking, Offshore Banking, Private Banking, Treasury Services and Trade Finance Services. In addition to market leading car and home loans, credit cards, personal and commercial loans, current and savings accounts, and fixed term deposits, Lloyds TSB Middle East also offers easy accessibility to secure internet banking 24 hours a day, 7 days a week, along with our telephone based Solutions team.

For further information please contact:
Local PR contact
John Hobday/ Marcus Pepperell
FTI Consulting
+971 04 437 2100 / +971 50 464 8706
john.hobday@fticonsulting.com / marcus.peperell@fticonsulting.com

UK PR contact
Ian Kitts
Head of Media, Wholesale & International
+44 207 356 1347
+44 7584 580 743

© Press Release 2012