DCSIMG

Lloyds warns of risks over independence vote

  • by GARETH MACKIE
 

State-backed lender Lloyds Banking Group today became the third financial services giant to warn over the consequences of a “yes” vote in September’s referendum.

In its annual report, published today, Lloyds said: “The impact of a ‘yes’ vote in favour of Scottish independence is uncertain.

“The outcome could have a material impact on compliance costs, the tax position, and cost of funding for the group.”

The group, which revealed chief executive Antonio Horta-Osorio received a total pay package of almost £7.5 million last year, said it was monitoring and assessing “the potential impact on the group’s business and impact on customers of a vote in favour of Scottish independence”.

Fellow bailed-out lender Royal Bank of Scotland issued a similar warning last week, when it delivered its annual results.

In the “risk” section of its results statement, RBS said: “A vote in favour of Scottish independence would be likely to significantly impact the group’s credit ratings and could also impact the fiscal, monetary, legal and regulatory landscape to which the group is subject.”

Edinburgh-based life and pensions group Standard Life last week said it was preparing to move parts of its business outside Scotland if the country votes for independence.

 

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