LLOYDS Banking Group chief Antonio Horta-Osorio has told the part-nationalised institution he does not want to be considered for a potential £2.4 million bonus, days after returning from a exhaustion-related leave of absence.

For 2011, Mr Horta-Osorio is entitled to an annual bonus of up to 225% of his basic £1.06m salary, dependent on meeting profit targets and other measurements such as small business lending.

However, the bank, which includes Bank of Scotland and Scottish Widows, could still give him a long-term share award based on his performance for the last 12 months of up to 420% of salary, some £4.5m.

Mr Horta-Osorio became chief executive in March after joining from Santander in January. He was absent from late October until early January.

He said: "I believe my bonus entitlement should reflect the performance of the group but also the tough financial circumstances that many people are facing. I also acknowledge my leave of absence has had an impact both inside and outside the bank including for shareholders."

Mr Horta-Osorio's predecessor Eric Daniels controversially received a £1.45m bonus in his final year.

Mr Daniels could yet be forced to return part of it after Lloyds put £3.25bn aside last year as compensation for mis-selling payment protection insurance.

In 2011, shares in 41% state-owned Lloyds plunged 62.2% to 24.825p. The break-even price for the taxpayer's stake is 72.2p, meaning a return to the private sector is likely to be some time away. Lloyds's shares closed yesterday at 29.07p.

Lloyds has cut around 27,500 jobs since the credit crunch hit, of which some 2000 were in Scotland.

Lloyds chairman Sir Winfried Bischoff said: "Under Antonio's leadership, the bank made significant progress last year in its transformation against a very difficult economic backdrop.

"However, given the economic circumstances, the financial challenges that many people are facing and his recent leave of absence, Antonio felt it appropriate not to be considered for any award he might receive under the group's annual bonus scheme for 2011."

Royal Bank of Scotland, which is 82% taxpayer-owned, will consider in the next few weeks whether to grant its chief executive Stephen Hester his annual bonus for 2011, which could be worth about £1.3m.

RBS's investment banking chief John Hourican could receive up to £4m.