9,000 jobs and 200 branches to go at Lloyds
Some 9,000 jobs are to go at Lloyds Banking Group and 200 of its branches are set to close in the next three years, bosses have confirmed.
The group, which owns the Halifax and Bank of Scotland brands and is 25% owned by the taxpayer, said the move was in large part down to customers moving to online and mobile banking services.
It said is also setting aside another £900 million to cover payments to customers mis-sold Payment Protection Insurance (PPI), bringing the group's total costs so far for the scandal to £11.3 billion.
The job losses represent around 10% of bank's workforce of 88,000 and come soon after it shed 43,000 positions after the 2008 financial crisis. It said that the branch closures would be restricted to Halifax and Bank of Scotland branches and stressed that 90% of its customers will have a branch within five miles of their home.
However, it did state that it would also be opening around 50 branches in the next three years, taking the total branch closure figure to around 150.
Chief executive Antonio Horta-Osorio said: "Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK-focused retail and commercial bank.
"The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders."
In July, a report from the British Bankers' Association (BBA) revealed that Brits are increasingly turning their backs on branches in favour of digital banking.
The report found that the UK is now making nearly £1 billion worth of transactions a day online and via mobile. This figure was in stark contrast to the decline in branch use, with Royal Bank of Scotland (RBS) predicting that just 10% of its transactions will be carried out in-branch by the end of 2014, while HSBC said it had seen a 30% drop in footfall in the past four years.
Payment protection insurance is designed to cover you should you fall ill, have an accident or lose your job and can’t make repayments on loans or credit cards. However, research by consumer watchdogs found the cover to be overpriced, filled with exclusions (policies exclude self-employment, contract employees and pre-existing medical conditions) and were often mis-sold because the exclusions were never fully explained. In May 2011, the High Court ruled banks had knowingly mis-sold PPI and ordered them to compensate around two million consumers.