Merging and rationalising two major Asset Finance businesses

The Problem

Following the takeover of HBoS by Lloyds at the end of 2008, the first area where the new Lloyds Banking Group sought to realise synergies was with the Asset Finance operations of the two heritage organisations. Some of the areas within which HBoS had operated were now judged to be non-core and required a controlled exit or run-down, in some cases with an extended run-off period of five years or more. The remaining core businesses needed to be combined with the minimum disruption of customer service. All of this change would have a significant impact on employee numbers and locations.

Our Solution

Working closely with Lloyds and HBoS senior management we:

  • Conducted a strategic review of options/integration approach for the asset finance businesses of the two heritage companies.
  • Identified growth, closure and other routes for each business in the portfolio.
  • Developed implementation plans for migration of core business and closure and run-off of non-core businesses.
  • Programme-managed the path-finding integration programme.
  • Supported engagement and implementation activities with organisational, HR, commercial, customer and industry stakeholders

Client's Benefits

The safe run-down or transfer of asset finance books of around £20bn with minimum disruption for customers and intermediaries, with synergy savings of almost £15m. 1500 employees were directly impacted, with re-deployment secured for 250. The programme was used as a model for subsequent integration initiatives within LBG.