New bank chief is to call for the "revitalisation" of Lloyds Banking Group as he sets out ambitious plans to place the Halifax and Scottish Widows brands at the heart of the part-nationalised bank.

Antonio Horta-Osorio's review, due to be delivered on June 30, is expected to deliver the most fundamental shake-up to Lloyds since the merger of Lloyds TSB and HBOS at the height of the financial crisis, cutting billions in pounds of costs in an effort to make the bank's operations more customer-focused.

In the review, he is set to:

• Push the Halifax to become the group's prime retail brand at the same time as retaining the Lloyds and Bank of Scotland branch network;

• Set a long-term cost:income ratio target as low as 45pc;

• Provide a firm commitment to retaining Scottish Widows and Scottish Widows investment partnership, its fund management arm;

• Detail an efficiency drive expected to yield as much as £2bn in costs which will see the disappearance of thousands of jobs.

The Sunday Telegraph has learnt that in spite of earlier suggestions that he may dispense with Scottish Widows, the insurance arm inherited from HBOS, he believes it sits at the heart of the business. His thinking is understood to have been influenced in part by Basel III capital requirements, which make it less onerous and thus more attractive to keep such..........Read more HERE on this story