Lloyds Banking Group MD to step down

Watkins, who took up the role at the beginning of 2009, has decided to pursue other opportunities. He was previously chief executive of retail products at HBOS.

Mike Kula, operations director of mortgages, will now act as head of mortgages.

Wealth and international director Jo Dawson has also decided to pursue other opportunities outside the company and will leave at the end of the month. Dawson was previously head of risk at HBOS.

The bank has also revealed a reshuffle in its life, pensions and investment business of Scottish Widows, Clerical Medical and the general insurance arms of Halifax and Lloyds TSB.