Lloyds Banking Group on Monday said it is looking for a new chief executive to replace Eric Daniels next year, in a move that was widely expected after the bank in March said it had short-listed potential candidates as part of a routine contingency plan.

Lloyds said chairman Win Bischoff will lead a search for a successor who could come from inside or outside the bank. It said Daniels will remain in the job until the search is completed.