Horta-Osorio faces medical checks before possible return to work

But it is understood that Lloyds has employed an independent medical expert to assess the chief executive’s condition and to advise whether he would be able to delegate more to colleagues if he did return to avoid a recurrence of his condition.

The expert, who has had access to both Horta‑Osorio’s doctors and medical records, is expected to submit a report to the Lloyds board by the middle of this month, possibly late next week.

Meanwhile, it is understood that the bank’s non‑executive directors have met Horta‑Osorio individually to make their own assessments of how well he has recovered and how well he would be able not to micro‑manage the business in future.

It is understood the Lloyds board hopes to make a decision before Christmas. Lloyds declined to comment yesterday. One City banking analyst commented: “In effect, it looks like Antonio is being asked to informally reapply for his job as chief executive.”

It is thought that Lloyds may also decide to make a simultaneous announcement before Christmas on the outcome of the sale or flotation of 600‑plus branches.

That has been ordered by the European Commission in return for the taxpayer aid Lloyds received at the time of the financial sector crash in 2008.

Two bidders are left in the frame, the Co‑operative Group and banking sector consolidation vehicle NBNK Investments, but the bank has always left the option of a flotation of the assets, called Project Verde, if a sale price could not be agreed.

One analyst said: “It would be helpful to have matters cleared up by Christmas. Lloyds has been beset by uncertainty and boardroom and Project Verde clarity would be welcome.”

Lloyds’s directors are aware that there is scepticism among some of its shareholders about Horta‑Osorio’s ability to run the bank in a way that does not impair his health.