Shares in part-nationalised lender Lloyds Banking Group rallied on Wednesday afternoon after it was announced that Group Chief Executive Antnio Horta-Osrio has been given a clean bill of health to return to his post.
A statement from the bank said he will return to the bank as Group Chief Executive Officer (CEO) on January 9th, 2012.
Horta-Osrio is currently on a leave of absence, getting some much needed rest after working himself to a frazzle trying to revive the banking group's fortunes, which took a severe turn for the worse after its ill-advised takeover of HBOS in 2008.
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At Horta-Osrio's instigation, the board has decided to restructure and reduce the CEO's direct reporting lines in order to strengthen the accountabilities of his senior management team.
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"This is designed to provide the most appropriate environment to maximise the senior management's contribution as the group enters the next stage of its transformation," the bank's statement said.
"The board would like to thank Tim Tookey for the considerable support and dedication he has shown whilst acting as Interim Group Chief Executive in addition to his role as Group Finance Director," said Sir Win Bischoff, Chairman of Lloyds Banking Group.
The bank, which is 41% owned by the UK taxpayer, had put contingency plans in place in late November in case Horta-Osrio's recovery time took longer than originally envisaged. David Roberts, a non-executive director and chairman of Lloyds' Risk Committee, was in line to take over as interim group chief executive from Tookey, who is due to move on to Friends Life, a division of insurance outfit Resolution, in February 2012.
The market reacted positively to the news, moving into the blue having spent the morning session in the red.
At 2:21pm the shares were up 0.1p to 24.82p, well above their low for the day of 23.79p.
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