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Lloyds to cut thousands more jobs

July 28, 2016

Lloyds Banking Group has said it will have to speed up its cost-cutting plan to help offset a more testing business environment. Britain's largest retail bank is to axe many more jobs as part of the scheme.

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Lloyds Banking Group
Image: Reuters/Stefan Wermuth

Lloyds Banking Group said Thursday more savings would be required to offset a likely drop in demand for credit after Britain's vote to leave the European Union.

The lender announced plans to save 400 million pounds ($527 million, 475 million euros) by the end of 2017 by slashing a further 3,000 jobs and closing an additional 200 branches to improve its earnings and protect its dividend profile. The bank said it would pay an interim dividend of 0.85 pence.

"Given the current uncertainty, it's too early to determine the impact [of the announced measures] on our formal longer-term guidance," Lloyds said in a statement.

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"However, while the business will remain highly capital generative, it's possible that this generation may be somewhat lower in future years than previously guided," it added.

Lloyds on Thursday reported a first-half pretax profit of 2.45 billion pounds in the six months to June 30, more than double the sum logged in the same period last year.

A significant rise in impairments to 254 million pounds prevented an even bigger surge in half-year earnings, the bank noted.

hg/sri (AFP, Reuters)