Lloyds Banking Group IT underpins recovery

Lloyds Banking Group returned to profit in 2010 with its IT strategy central to the bank's cost cutting and service delivery HBOS.

Lloyds Banking Group returned to profit in 2010 with its IT strategy central to the bank's cost cutting and service delivery following the integration of HBOS.

The bank reported a profit of £2.2bn in 2010 compared to a loss of £6.3bn in 2009.

Lloyds TSB, encouraged by the government, acquired ailing HBOS for £12.2bn. in September 2008. Lloyds TSB appointed Mark Fisher director of IT and operations to oversee the integration of HBOS.

Fisher joined from Royal Bank of Scotland (RBS) where he had been working on the integration of parts of Dutch bank ABM AMRO, which were acquired by RBS in 2007.

Lloyds Banking Group says it is making good progress combining HBOS and Lloyds TSB systems and has already saved £1.4bn by eliminating duplication. "We achieved savings across a wide range of Group activities, including implementing improved processes which are now being used on a harmonised basis across the Group, and driving savings in property and procurement," said the firm's financial statement, released on Friday. 

The bank says there is more to be done this year: "As part of the integration, we have also commenced the implementation of a number of major systems changes, which will complete in 2011."

It has so far spent £2.74bn integrating HBOS, which includes IT costs as well as staff cuts, many of which were in the IT department. The group reduced its IT costs in 2010 by 4%, compared to the year before. The bank has cut thousands of IT and back-office jobs as part of a total of 26,000 announced cuts since the HBOS acquisition. In 2009 union Unite accused Lloyds of embarking on a strategy of "death by a thousand cuts".

The bank has completed the software roll-out to support an integrated IT platform across the bank, which is now live and operational for most Lloyds TSB processes and transactions, said the bank.

Read more on IT strategy

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close