Lloyds looks to former minister in hunt for chief

Lloyds' chief executive Eric Daniels is the only boss of a rescued UK bank to have retained the top job through the financial crisis, and one of few worldwide.

It was reported Lloyds chairman Win Bischoff held the conversation with Mr Davies shortly after the election which ended the former chief executive and chairman of Standard Chartered's tenure as trade minister.

The report said Mr Davies turned down the approach.

The informal approach is part of long-term succession planning at the rescued lender and not part of an organised recruitment drive, sources said. But the move is the first indication that Britain's largest retail lender is considering life beyond Mr Daniels, 58, widely expected to step down once he considers Lloyds' turnaround to be complete.

Mr Davies could not be reached for comment.