"A strong management team is in place and we have made good progress in creating segregated IT systems on the proven Lloyds Banking Group platform ...
"Detailed plans are in place for a rebranding of the business as TSB which will be visible on the High Street during the summer of this year, at which point the TSB Bank (Verde) will operate as a separate business within Lloyds Banking Group."
Lloyds has given the following explanation for the collapse of the planned sale of more than 600 branches to the Co-operative Group, citing the Co-op's board:
The Co-operative Group's board has decided that they can no longer proceed with a purchase of the Verde business given their view of 'the impact of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general'.
Lloyds Banking Group's sale of more than 600 branches to the Co-operative Group has collapsed.
Part-nationalised Lloyds, which is being forced by Europe to sell the branches after its £20 billion taxpayer bailout during the financial crisis, will instead pursue a stock market flotation for the division this summer.
The Co-op has reportedly struggled to plug a £1 billion capital gap needed to complete its takeover of the 632 Lloyds branches, blaming the weak economic outlook and heavy regulatory burdens.