Lloyds Banking Group is a UK commercial bank, with income mainly from Retail (54%) and Wholesale banking (29%). Acquisition of HBOS during the financial crisis (January 2009) led to a near collapse of the group. A Huge rise in toxic assets and losses lead Lloyds to seek UK government recapitalization resulting It is now being 40.6% state-owned. It aims to achieve integration synergies from the HBOS acquisition of c.GBP 1.3bn in 2010 and GBP 2bn in 2011. Lloyds has a higher loan-to-deposit ratio (154% 2010) than its main peers although down from 169% in 2009. This forces the group to rely on volatile wholesale funding. In addition, it has a weaker capital position than its main peers with a 10.2% Core capital ratio in 2010, up from 8.1% in 2009. Lloyds expects the UK government required GBP 200bn balance sheet reduction to enhance its capital position, help reduce dependence on wholesale funding and enable it to stop using public and central bank facilities by the end of 2012. However, a regulatory review that may lead to the break up of large UK banks remains a threat.