Lloyds, a British bank, is expected to cut off an additional 3,000 jobs until 2017. This is according to a statement released by the bank. It is their way of preparing for the interest rate cut which will be made by the Bank of England. This move is already expected among the banking sector as an aftermath of the Brexit vote.
LBG or Lloyds Banking Group revealed in a statement during the interim results that they are planning to extend their plans to restructure which means they will be closing down around 200 branches. This also means that there will be 3,000 jobs affected by the closure which take effect by the end of 2017.
Due to the restructuring program that the bank is undertaking, which they have announced back in 2014, there will be a total job cut off of 12,000 in different positions.
The Bank of England, on the other hand, is anticipated to lower its interest rates and will bring the figure to the lowest it has ever been – 0.25 per cent. This is a result of the uncertainty that has overcome the country ever since the vote for Brexit was decided. Lloyds admitted that the vote has taken the economy to a low point.
LBG also revealed in their earnings releases that the behaviours of the customers have changed and there is a new environment adapted wherein the interest rates are lower but paid over a longer period of time. Along with the plans of the bank to restructure is an extended plan of closing down 200 of its branches and a move to cut off around 3,000 jobs before 2017 ends.
The lender is now almost the private sector’s ownership once more following the state-bailout that started during the financial crisis that happened in 2008. It has also removed the target for cost savings of the program which is now at £1.4 billion from the previous £1 billion.
LBG also shared that their net profits have doubled and is now at £1.3 billion during the first six months of 2016 but they are still worried about the effect of Brexit in the coming months.
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