Sir Win Bischoff, chairman of Lloyds Banking Group, is to step down from his role no later than the shareholders meeting in May 2014.

Bischoff has held his position since September 2009 but is now preparing for retirement. The exact date of his departure has not yet been announced.

Senior independent director Anthony Watson has begun the search for a successor.

Commenting on his departure, Bischoff said: “Lloyds Banking Group has, over the past four years, made significant progress in its goal to become a strong, efficient, UK-focused retail and commercial bank. Whilst clearly some challenges remain, the performance of the Group is well on track. Indeed, in many areas, it is ahead of plan. This gives me every confidence in the future success of the Group and it is therefore a good time to start the search for my successor.”