Lloyds Banking Group is hunting for a new CEO to replace António Horta-Osório who will step down as chief executive in 2021 after nearly 10 years.

He plans to retire from the group next June.

Lloyds Banking Group owns a range of financial brands including Scottish Widows, Lloyds Bank, Bank of Scotland and a half share in new Financial Planning firm Schroders Personal Wealth.

Group chair Lord Blackwell will also retire as chairman over the coming year, as previously announced, and will be replaced by Robin Budenberg who will join group board in October and take over as chair in early 2021.

The bank says Mr Horta-Osório will continue to work on the group’s strategic plans, including efforts to cope with the impact of the Covid-19 pandemic.

Mr Budenberg has had a long career in financial services including spells at SG Warburg and UBS Investment Bank. He also worked with the Government in 2008 as an adviser on the recapitalisation of the UK banking industry. In 2009 he became chief executive, then chairman, of UK Financial Investments (UKFI) with responsibility for managing the UK Government's investment in UK banks, including Lloyds. In 2016 he was appointed chairman of The Crown Estate.

Lord Blackwell said: “I am delighted to welcome Robin Budenberg to the board as my successor.  His knowledge of the group combined with his broad experience in both financial services and other strategic advisory roles give him an outstanding background to provide the board leadership required to support the continued transformation of the group.

“I would also like to take this opportunity to pay tribute to the outstanding contribution that António Horta-Osório has made to first turning round and then leading the strategic development of the group over the last decade.  His personal commitment and strong vision have driven a period of massive and successful change in the group, restoring Lloyds to its preeminent position in Helping Britain Prosper as the UK's leading retail and commercial bank.

“During his tenure, he has overseen a comprehensive transformation of the group's balance sheet, operations, and customer propositions, including the repayment of the UK Government's £21bn investment and evolution of the group into the UK's largest digital bank. His decision to announce now his planned retirement allows for an orderly succession process to appoint a new chief executive next year to work with the new chair."

Mr Horta-Osório said: "It is of course with mixed emotions that I announce my intention to step down as chief executive of Lloyds Banking Group by June next year. I am lucky to have had the support of a superb board and executive team on whom I will continue to rely as we complete our current strategic plan, transforming the group into the bank of the future.”