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Lloyds to axe 3,000 jobs despite doubling profit

Lloyds Bank Black HorseLloyds Banking Group is cutting a further 3,000 jobs and closing 200 branches as it seeks to take £400 million out of its costs.

The bank, which also announced a doubling of half-year profit, said it was facing a more challenging environment and a cut in interest rates.

Chief executive Antonio Horta-Osório said he expects a “deceleration of growth” following the UK’s decision to leave the EU.

In a statement, the bank said: “Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage.

“However, 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.”

The cuts come on top of 4,000 job losses already announced this year.

It reported a statutory pretax profit of £2.45 billion for the six months to 30 June 30, against £1.2bn for the same period last year.

Revenue came in at a near-standstill £8.9bn.

The net interest margin – a key performance measure that tracks the difference between what Lloyds receives in interest and lends out to customers – widened to 2.74%.

Lloyds will lift its interim dividend by 13% to 0.85p.

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