Lloyds Banking Group has confirmed 9,000 job losses and the net closure of 150 branches over the next three years. The latest job losses – representing about 10% of its workforce – come on top of 43,000 cuts made since 2008.
The bank said it would concentrate on urban branch closures first and has abandoned its pledge to keep open “the last branch in town”.
The group is also setting aside another £900m to cover possible payouts for the PPI mis-selling scandal. That has cost Lloyds £11.3bn so far, including £2.5bn in administration costs. Other fines have topped £200m.
Lloyds, which owns the Halifax and Bank of Scotland brands, reported pre-tax profits of £1.61bn for the nine months to 30 September.
“The group is performing strongly,” said chief executive Antonio Horta-Osorio.
“We have met or exceeded the strategic objectives set out in 2011 and are ready to move on to the next stage in our development.”
The bank says it will be closing 200 branches but opening 50 new ones, bringing the net closure figure to 150 – about 7% of its network of 2,250.
The Unite union called on the bank to offer a “no compulsory redundancy guarantee”.
Spokesman Rob MacGregor added: “The wallets of top executives at Lloyds should not be getting fat by forcing low paid workers onto the dole. “If there are compulsory redundancies or customer service suffers then executive pay should be cut.”
