Despite reporting a 101 per cent increase in pre-tax profits, Lloyds Banking Group has announced it will be axing a further 3,000 roles and closing an additional 200 branches . This follows the announcement in 2014 that 9,000 employees will be made redundant and 200 High Street branches will be closed.

The bank aims to save £400 million by the end of 2017 to protect earnings and dividends against the effects of lower-for-longer interest rates.

Lloyds reported a £2.5 billion pre-tax profit for the half year to the end of June 2016. This is largely due to a sharp decline in the number of PPI compensation payouts, which has cost the bank £16 billion since 2011.

Customers logged into banking app 11 million times a day in the last year, highlighting the declining need for physical branches. “Customers love the new technology,” said Anthony Browne, CEO of the British Bankers’ Association.

Antonio Horta-Osório, chief executive officer at Lloyds, added: “While the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided.”

Underlying profits at Lloyds Banking Group fell by five per cent, as Horta-Osório expects a “deceleration of growth” following the UK’s decision to leave the EU.

Share Story: