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Lloyds appoints new CEO – here are the challenges he faces

by LLB Editor
30th Nov 20 9:50 am

The next man in the hot-seat at Lloyds faces a pretty stiff test. While Antonio Horta-Osorio’s long reign has been a mixed bag, he did achieve some of the big milestones in the recovery from the credit crunch. Perhaps most notably was the long-awaited return to the dividend list.

“While the pandemic has forced a new dividend hiatus it is hard to believe the reintroduction of the payout under his appointed successor Charlie Nunn will register quite the same impact,” says AJ Bell’s Russ Mould.

“Poaching Nunn from a senior role at rival HSBC may feel like a coup but it is fraught with some complication given his notice period and other restrictions – Lloyds needs the transition to be as smooth as possible given the rough waters it is entering, with Horta-Osorio already slated to depart next June.

“Horta-Osorio was leading Lloyds out of a crisis, yet Nunn will be leading the company as it heads straight into one – with the full impact of the coronavirus pandemic on the economy yet to hit.

“As unemployment mounts, the company is likely to see pressure on its credit book and while the PPI scandal is the rear-view mirror, Nunn will still face an ultra-low interest rate environment and a tough regulatory backdrop.

“The good news is that Lloyds’ balance sheet is in a much better position to absorb bad debts than it was back in 2007/8.”

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