Lloyds Bank Canada

Lloyds Bank Canada was a Canadian banking subsidiary of the British Lloyds Bank group. It was established in 1986 after Lloyds Bank acquired 90 percent of the assets and most of the liabilities of Continental Bank of Canada. The transaction gave Lloyds a domestic Canadian banking platform at a time when foreign banks were expanding their presence in the country's financial-services market. The Canadian operation was headquartered in Toronto and developed a nationwide branch network. At its height, it had 53 branches across Canada and operated as part of Lloyds Bank Group's overseas domestic-banking interests. Those interests included other international banking businesses, such as the group's operations associated with the National Bank of New Zealand. Lloyds Bank Canada experienced several years of losses. In 1989, Lloyds reached an agreement to sell its interest in the entire issued share capital of the Canadian operation to Hongkong Bank of Canada, a subsidiary of the London-based HSBC Holdings. The reported consideration was CAD 190 million. The transaction marked Lloyds Bank Canada's exit from the Canadian domestic-banking market, and the business ceased to operate as a Lloyds-branded Canadian subsidiary around 1990. The acquired institution subsequently became part of the HSBC organization in Canada. In 1999, Hongkong Bank of Canada changed its name to HSBC Bank Canada as part of its parent company's global branding strategy. Lloyds Bank Canada's later history is therefore connected to the development of HSBC's Canadian banking presence rather than to the continuing Lloyds brand. The former bank should be distinguished from later Lloyds Bank International activities in Canada. In 2009, Lloyds Bank International opened two Canadian offices offering international mortgage services, but those offices were separate from the former Lloyds Bank Canada subsidiary described in the historical record.

Lloyds Bank Canada's origins lay in Lloyds Bank's expansion into Canadian domestic banking during the 1980s. Continental Bank of Canada had been created earlier in that decade after Niagara Finance Company, later known as IAC Limited, broadened the scope of its operations. In 1986, Lloyds Bank acquired 90 percent of Continental Bank's assets and most of its liabilities. The acquisition formed the basis of Lloyds Bank Canada, a wholly owned Canadian subsidiary of Lloyds Bank plc. The new bank was headquartered in Toronto and operated within Lloyds Bank Group. It established a substantial physical presence, ultimately maintaining 53 branches throughout Canada. The business was part of the group's international domestic-banking interests, alongside other overseas operations including the National Bank of New Zealand. Its Canadian activities were distinct from Lloyds Bank's later international-mortgage offices established in Canada in 2009. Lloyds Bank Canada did not achieve sustained profitability. After several years of losses, Lloyds Bank negotiated the sale of its interest in the whole of the Canadian operation's issued share capital. The buyer was Hongkong Bank of Canada, itself a subsidiary of London-based HSBC Holdings. The 1989 agreement reportedly valued the transaction at CAD 190 million. The change in ownership brought Lloyds Bank Canada's business into the HSBC organization and ended Lloyds Bank's direct domestic-banking presence in Canada. The transition was completed around 1990, and Lloyds Bank Canada is generally described as having operated from 1986 to 1990. Hongkong Bank of Canada continued its Canadian activities under its own corporate identity before changing its name to HSBC Bank Canada in 1999. That renaming formed part of HSBC's broader effort to use a consistent global brand. Lloyds Bank Canada is therefore a defunct historical banking entity; it is not the same institution as Lloyds Bank International's later Canadian offices, which offered international mortgage services from 2009.

• 2009

  Separate Lloyds international-mortgage offices open in Canada

  [1]Lloyds Bank Canadaen.wikipedia.org

  Lloyds Bank International opened two Canadian offices offering international mortgages; these offices were separate from the former Lloyds Bank Canada subsidiary.

• 1999

  Hongkong Bank of Canada adopts the HSBC Bank Canada name

  [1]Lloyds Bank Canadaen.wikipedia.org

  The acquiring institution changed its name to HSBC Bank Canada as part of HSBC Holdings' global branding strategy.

• 1990

  Lloyds Bank Canada leaves the Lloyds group

  [1]Lloyds Bank Canadaen.wikipedia.org

  The Canadian subsidiary's period of operation under the Lloyds brand ended following its sale to Hongkong Bank of Canada.

• 1989

  Agreement to sell the Canadian operation

  [1]Lloyds Bank Canadaen.wikipedia.org

  Following several years of losses, Lloyds agreed to sell the entire issued share capital of Lloyds Bank Canada to Hongkong Bank of Canada for a reported CAD 190 million.

• 1986

  Lloyds establishes its Canadian banking subsidiary

  [1]Lloyds Bank Canadaen.wikipedia.org

  Lloyds Bank acquired 90 percent of Continental Bank of Canada's assets and most of its liabilities, establishing Lloyds Bank Canada as a Canadian subsidiary.

A full-service Canadian banking subsidiary within Lloyds Bank Group, serving the domestic market through a nationwide branch network before its sale following several years of losses.

• Banking · 1986

  Domestic banking services

  Lloyds Bank Canada operated as a domestic Canadian bank through a network that reached 53 branches. The available reference material identifies its business broadly as banking services but does not provide enough detail to distinguish particular deposit, lending, payments, or wealth-management products.

• 1989

  Sale of Lloyds Bank Canada to Hongkong Bank of CanadaM&A

  Background

  The Canadian subsidiary had recorded several years of losses, prompting Lloyds Bank to seek an exit from the Canadian domestic-banking operation.

  Action taken

  Lloyds agreed to sell its interest in the whole of the issued share capital of Lloyds Bank Canada to Hongkong Bank of Canada, an HSBC Holdings subsidiary. The reported consideration was CAD 190 million.

  Aftermath

  The transaction ended Lloyds Bank Canada's role as a Lloyds-owned Canadian bank around 1990 and transferred the business into the HSBC organization.

  Reported sale consideration. CAD 190 million (1989)

  Source

• 1990

  Lloyds Bank Canada exits the Canadian domestic-banking market[1]Lloyds Bank Canadaen.wikipedia.org

  M&A

  The former Lloyds Bank Canada subsidiary ended its period of operation under the Lloyds brand following the sale agreed in 1989.

• 1989

  Lloyds agrees to sell Lloyds Bank Canada to Hongkong Bank of Canada[1]Lloyds Bank Canadaen.wikipedia.org

  M&A

  After several years of losses, Lloyds agreed to sell its interest in the entire issued share capital of its Canadian banking operation to Hongkong Bank of Canada, an HSBC Holdings subsidiary, for a reported consideration of CAD 190 million.

1. 1Lloyds Bank Canadaen.wikipedia.org