Lloyds announces 150 branch closures

<p>Lloyds Banking Group is closing 150 branches over the next three years, resulting in 9,000 jobs losses.</p>

Lloyds Banking Group is closing 150 branches across the UK over the next three years, the bank has confirmed.

In its interim management statement of the third quarter of the year, the bank said that it would be moving away from its pledge to keep open "the last branch in town" and will now focus on urban branch closures first. The latest round of closures will result in the loss of 9,000 jobs, representing a ten per cent reduction of its workforce.

Lloyds has been reducing its workforce since the financial crash of 2008 and has made 43,000 cuts in the past six years alone. Its latest decision comes as it sets aside £900 million to cover possible payout for its role in the PPI mis-selling scandal.

It was also hit with a £218 million fine earlier in the year for "serious misconduct" for the Libor rigging scandal. The bank received a boost recently after the European Banking Authority confirmed that it, along with other British financial centres such as Barclays, HSBC and Royal Bank of Scotland, had passed its "stress test" of its finances.

Despite the fines and the need to reduce its workforce, the bank said that it was performing well. Lloyds, which also owns Halifax and Bank of Scotland, reported pre-tax profits of £1.61 billion for the nine months to September 30th.

Antonio Horta-Osorio, Lloyds' chief executive, said in a statement: "The group is performing strongly. 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."

Lloyds explained that one of the driving forces behind its decision to make the latest round of cuts was due to customers switching to mobile banking. In response, the bank has committed significant investment towards this technology setting aside £1 billion to be used over the coming months.

Find up to date information on spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.