Lloyds Banking Group LLOY.LN +0.46%, one of the U.K.s biggest lenders, has appointed insider Paul Gordon as the new head of its loss-making Australian operations.
Lloydss unit in Australia posted a net loss of over 1 billion Australian dollars (US$1.04 billion) in 2011 after it wrote off a portfolio of soured commercial property loans.
Mr. Gordon replaces Dave Smith, who Lloyds said will stay at the company for another few months to help with the leadership transition. A spokeswoman for the bank said that Mr. Smith had resigned from its position and hasnt identified where he will be going after the transition period ends.
Mr. Smith said in a statement that the Australian business is on a very strong footing and that he felt it was the right time to seek new opportunities.
A 27-year veteran of Lloyds, Mr. Gordon was most recently the Australian units chief operating officer. His official title is chief executive of Lloyds International, and he will also take responsibility for managing the banks Hong Kong operation.
Earlier this month, Lloyds
sold a portfolio of distressed corporate loans with a face value of A$350 million to a consortium comprising
KKR KKR 0.00% & Co.s Special Situations Group and Sydney-based Allegro Funds.
