Lloyds
Antonio Horta Osorio, Dr Wendy Piatt Getty Images, Sky News

Antonio Horta-Osorio, the chief executive of Lloyds Banking Group, has admitted he regrets any "damage done to the group's reputation" caused by allegations over his private life.

In a message sent to the bank's 75,000 employees, Horta-Osorio acknowledged his mistakes while insisting that staff and himself had to maintain the highest professional standards.

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"My personal life is obviously a private matter as it is for anyone else," he wrote in a message seen by IBTimes UK.

"But I deeply regret being the cause of so much adverse publicity and the damage that has been done to the group's reputation. It has detracted from the great work which you do for our customers on a daily basis and from the major accomplishments of the past five years."

Earlier this month, pictures emerged portraying the 52-year-old in Singapore with Dr Wendy Piatt, a former aide to Tony Blair, during a business trip in June. Horta-Osorio, who has been married to his wife Ana for 25 years and has three children with her, is alleged to have spent nearly £4,000 (€4,700; $5,200) during his stay with Piatt at the Mandarin Oriental Hotel in the city, including for treatments at the luxury spa.

A City analyst said the allegations were "extremely serious".

However, veteran analyst David Buik told IBTimes UK that while Horta-Osorio's behaviour would attract unwanted scrutiny, it was unlikely to cost him his job.

"As far as I'm concerned when you're in a position of huge trust and when you're in the process of nursing a bank out of a bailout, one can expect to be constantly under the microscope," he said.

"He'll regret his indiscretion and there's always gonna be a challenge of trust, I think. However, he won't be the first and he won't be the last and I'm not sure you can punish someone for something they have done in their private life."

In his message to the bank's employees, Horta-Osorio added that he will "continue to strive" to meet the high standards he has set for himself and for his staff. "More broadly I have been a strong advocate of expecting the highest professional standards from everyone at the bank, and that includes me," he said. "I will continue to strive to meet those standards.

"Having the highest professional standards raises the bar against which we are judged and as I have always said we must recognise that mistakes will be made. I don't expect anyone to get everything right all the time. The important point being how we learn from those mistakes and the decisions and actions we take afterward [sic]."

The FTSE 100 giant's CEO also moved to reassure investors over his future at the lender, which remains 9% owned by the taxpayers following a bailout during the financial crisis. "Please be assured that I am as committed as ever to leading the group forward to deliver our strategy and to meet our future ambitions," he said.

Message from António Horta-Osório

Having returned to work I wanted to use the opportunity to address the recent media coverage of my private life.

As you may have read, my expenses were reviewed in light of speculation by certain newspapers and the Group has confirmed that they are fully compliant. As you'd expect, I pay for my personal expenses whilst away and only reclaim what is a business expense.

My personal life is obviously a private matter as it is for anyone else. But I deeply regret being the cause of so much adverse publicity and the damage that has been done to the Group's reputation. It has detracted from the great work which you do for our customers on a daily basis and from the major accomplishments of the past five years. This includes the Government shareholding having reduced from over 40% to around 9% with over £16 billion plus dividends having been returned to taxpayers.

More broadly I have been a strong advocate of expecting the highest professional standards from everyone at the bank, and that includes me. I will continue to strive to meet those standards. Having the highest professional standards raises the bar against which we are judged and as I have always said we must recognise that mistakes will be made. I don't expect anyone to get everything right all the time. The important point being how we learn from those mistakes and the decisions and actions we take afterward.

As we look forward, it is your hard work over the last five years returning the Group to financial health that means we are best placed among our peers to continue supporting the UK economy and to help Britain prosper. We chose to focus on helping the UK economy – in particular through our support for first time buyers, small businesses and UK corporates – and as a result by choice, our future is inextricably linked with the future success of the UK economy.

The extended period of low interest rates that we now face has created uncertainties for the UK economy and new challenges for the Group. And as a UK focused bank we are not immune to the factors likely to shape the UK economic outlook, but I believe we will be well positioned to meet them.

With that in mind please be assured that I am as committed as ever to leading the Group forward to deliver our strategy and to meet our future ambitions. Thank you again for your messages of support over the last few weeks. I have greatly appreciated them.

Best wishes,

António.

LON:LLOY