Lloyds shares up as CEO Horta-Osorio announces return

Lloyds Banking Group CEO António Horta-Osório is to return as group chief executive on 9 January 2012 after a period of medical leave.

The company announced on 2 November that Horta-Osório had taken a leave of absence on medical advice, and says it has completed a "rigorous process" to assess his ability to return and lead the group.

The bank said independent medical advice concluded the former Santander UK CEO has now made a full recovery. Lloyds CFO Tim Tookey, himself due to leave the business in February, had been installed as interim CEO in Horta-Osório's absence.

Shares in Lloyds reversed earlier losses on the news of Horta-Osório's return to stand up 0.3% on the day at 24.8p.

Horta-Osório's direct reporting lines will be restructured and reduced upon his return in order to boost the contribution made by his senior management team, Lloyds said.

The chief executive joined from Santander early in 2011 but has had a tough first year as legacy assets and poor investor sentiment weighed on the bank, whose shares are down 63% year-to-date.