Lloyds Banking Group (LON: LLOY) named Charlie Nunn as its next Chief Executive Officer on Monday. Nunn is currently serving at HSBC as the head of wealth and personal banking. Nunn will fill the shoes for Antonio Horta-Osorio at Lloyds. Antonio expressed plans of stepping down in July and is now scheduled to exit the role in 2021 after a 10-year tenure.
Lloyds Banking Group shares closed the regular session about 5% down on Monday. The British financial institution now has a per-share price of 36 pence that translates to an over 40% decline this year, despite a 50% recovery since its year to date low of 24 pence per share in late September. Lloyds Banking Group had started the year at a per-share price of 64 pence.
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Lloyds posted better than expected profit for fiscal Q3
As per experts, Nunn is expected to see challenging times as he strategizes to pull Britain’s largest lender out of the COVID-19 driven fallout. The pandemic also pushed the central bank into aggressively cutting interest rates this year, adding further to the difficult financial environment.
As the government withdraws its aid for jobs and businesses in 2021, analysts forecast Lloyds to take a further hit in the upcoming months. Lloyds Banking Group, however, posted better than expected profit for the fiscal third quarter in October.
Nunn had taken his current role at HSBC earlier this year. As per Lloyds Banking Group, Nunn will receive £1.125 million of basic annual salary, £1.05 million of fixed share award, and flexible benefit funding valued at 4% of basic salary. Upon retirement, Nunn will receive 15% of his salary as a pension.
HSBC says Nuno Matos will replace Charlie Nunn in 2021
Upon Nunn’s departure from HSBC, the British investment bank also said on Monday, Nuno Matos will take over his role next year. Matos is currently serving as the Chief Executive of HSBC Europe.
Financial Times also reported over the weekend that the British multinational investment bank was considering quitting retail banking in the United States after posting £388 million of pre-tax loss attributed to the American division in the first nine months of the current financial year.
Lloyds Banking Group performed fairly upbeat in the stock market last year with an annual gain of close to 20%. At the time of writing, it is valued at £25.80 billion and has a price to earnings ratio of 90.43.
