Brian Pitman, former Lloyds Bank CEO, dies at 78

Sir Brian Pitman, the banker who led Lloyds TSB to become one of Europe's largest financial groups, has died at age 78, the British Bankers' Association said Friday.

Pitman died Thursday following a heart attack earlier in the week.

Angela Knight, chief executive of the Bankers' Association, called Pitman "a giant" of the financial industry who was "widely recognized for his knowledge and ability as well as his willingness to get involved."

Sir Richard Branson, founder of Virgin Group, who earlier this year hired Pitman as chairman of Virgin Money, called him "the most respected banker of his generation."

Pitman joined Lloyds Bank in 1952, and served as chief executive officer from 1983 to 1997, moving up to chairman from 1997 to 2001.

He built Lloyds from a small bank to one of Europe's largest through acquisitions and the merger with TSB Bank PLC in 1995. He was conservative in his approach, shunning investment banking and giving up on international expansion following losses in a sovereign debt crisis in Latin America.

"Sir Brian was a truly inspirational leader, who contributed an enormous amount to Lloyds over many years," said Eric Daniels, chief executive of the now part-nationalized Lloyds Banking Group. "He was a towering figure in our industry and was involved in many of the major changes that have shaped the banking sector."

Pitman remained active after standing down at Lloyds. He was recently appointed chairman of Virgin Money, was an adviser to Morgan Stanley International, and served on the boards of Singapore Airlines, Tomkins and Carphone Warehouse. He was also appointed as an adviser to the Financial Services Authority.

Appearing last month before the Future of Banking Commission, Pitman criticized British banks for pushing loans and other financial products at customers. The first person he encountered on entering a bank, he said, was a member of sales staff.

"Can you imagine giving incentives to staff for selling loans? It's crazy, but it's happening. And it's unnecessary," Pitman said. "Handelsbank in Sweden doesn't pay bonuses, and it's one of the best in the world. If you give people targets you are encouraging them to increase risk."

Pitman said his business drive stemmed from infancy; he was nine weeks old when his father died.

"Anyone who loses a father takes on responsibility quite quickly," he said. "It made me self-reliant."

He is survived by his wife Barbara and their three children.