Speculation that Lloyds Banking Group plc (LON:LLOY) chief executive, Antonio Horta-Osorio, is set to resign is rife ahead of the bank’s annual meeting on Thursday.
The lender is said to be drawing up contingency plans amid rumours that Osorio may seek another job after the government completes its sale of Lloyds’ shares.
The government, which bailed out Lloyds during the 2008 financial crisis, is expected to offload its remaining 0.89% stake as soon as this week.
Finance Director George Culmer will reportedly step in temporarily if Horta-Osorio decides to step down.
Horta-Osorio has been suggested as a possible replacement for HSBC’s outgoing chief executive Stuart Gulliver, who departs next year, The Times reported.
Rumours that Horta-Osorio might be looking for another job have been knocking around for some time after successfully leading the group’s recovery.
At the full year results in February when Lloyds reported its highest full year pre-tax profit in a decade, the chief executive was questioned on whether he planned on moving on now his job in turning around the bank was done.
Horta-Osorio indicated that he would remain at Lloyds as there was “plenty more work to be done”, including the continued digitisation of the bank and a third strategic plan to be announced at the end of the year.
“I’m very happy at Lloyds and very happy with the team,” he told the press.
Lloyds also reported strong first quarter earnings last month. For the three months to March 31, the group’s statutory pre-tax profit jumped to £1.304bn, up from £654mln a year earlier and £973mln in the final quarter of 2016, even after a further batch of provisions for payment protection insurance mis-selling and other conduct issues totalling £550mln.