Lloyds job cuts run deeper – 1,230 to go
António Horta-Osório, Lloyds
Lloyds has confirmed 1,230 jobs will be cut as part of its continuing restructuring plan.
The jobs will go from group operations, retail, customer products and marketing, finance and risk divisions.
As Banking Technology reported in April, Lloyds revealed it was to cut 625 jobs – part of its 9,000 job reductions and 200 branch closures announced a few years ago. These latest 1,230 jobs are included in that figure of 9,000.
In July, Lloyds announced it was to axe 3,000 further jobs and close 200 more branches, despite a 101% rise in pre-tax profits.
Lloyds says 200 more UK branches will disappear by the end of 2017 – meaning a total of 400 branches are history.
The bank says the new bout of cost-cutting is due to the rise in digital banking, and because of the chances of interest-rates staying low in the aftermath of Brexit.
While branches and jobs are being axed, Lloyds reported a £2.5 billion pre-tax profit for the half year to the end of June. For the same period last year, it made £1.2 billion.
This healthy increase is mainly down to the sharp drop-off in payment protection insurance (PPI) compensation payouts, which had negatively impacted previous profits. In total, the PPI saga has cost Lloyds more than £16 billion since 2011.
Despite the boost to pre-tax profits, underlying profits at Lloyds decreased by 5%; and chief executive Antonio Horta-Osorio says he expects a “deceleration of growth” following the UK’s decision to leave the EU.
But he adds that Lloyds is in a “strong position to withstand the uncertainty” created by the vote.
