Lloyds TSB branches at Tuesday Market Place in Lynn and Market Place in Swaffham are set to become stand-alone TSB banks from this summer after plans to transfer them to the Co-operative Group collapsed.
Last week, the Co-op announced that it had withdrawn from a deal to buy 632 UK bank branches from the Lloyds Banking Group which had been scheduled for completion by the end of November this year.
Lloyds customers at the branch on the corner of Tuesday Market Place and High Street in Lynn and at 61 Market Place, Swaffham, would have been among a total of about 4.8 million transferred to the Co-op, as part of the sale required by European regulators after Lloyds was part-nationalised in 2009.
After buying Halifax Bank of Scotland (HBOS) at the height of the financial crisis in 2008, Lloyds needed a government bail-out and the British taxpayer still owns 40 per cent of the banking group.
Co-op chief executive Peter Marks said that, after considering all aspects of the proposed transaction in detail, the board decided that it was not in the best interests of its members to proceed with the deal.
He said it would not have delivered a suitable return for its members “against the backdrop of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general”.
The branches will now be put up for sale by Lloyds and will be listed as a stand-alone bank through the stock market. They will be rebranded as TSB Bank and will operate as a separate business within the Lloyds group.
A Lloyds group spokesman said everything was in place for the branches at Lynn TMP and Swaffham to go it alone as the TSB Bank. There would be no direct impact on customers and staff would be continuing in their present jobs,
She said: “Customers don’t need to do anything and can carry on banking in the same way as they do now, accessing their accounts as usual via the branch, telephone and online banking.”
Lloyds group chief executive Antonio Horta-Osorio said: “The TSB Bank will be an attractive retail and commercial bank that will have around 630 branches across the UK, a strong management team and will be a real challenger on the high street.”