The review is expected to be completed in the first half of this year and will affect all of the bank's roster agencies, including Rainey Kelly Campbell Roalfe/Y&R, Partners Andrews Aldridge, WWAV Rapp Collins and ZenithOptimedia UK.
The review will also encompass non-roster agencies that have worked with Lloyds TSB on a project basis. It will assess both the quality of each agency's work and their way of working, as well as the cost of their services.
Alan Gilmour, the head of marketing at Lloyds TSB, told Campaign that while the bank regularly reviews its relationships, it would subject its agencies to much "closer scrutiny" this time than it has done in the past.
"When agencies are with you for a while, you just keep using them because they're there," he explained.
"This review is about asking: 'Are we still working with the right agencies, given the different shape of our organisation? Which ones are best positioned to help take us forward, given where we are today?'"
Gilmour stated that no outside agencies had yet been contacted, but admitted that the bank would look outside the roster if the review results indicated that it should do so.
The news of the review comes the week before Lloyds TSB is expected to unveil profits of close to £3.5 billion - a figure slightly down on last year.