Lloyds has accelerated its job-cutting scheme, axing a further 3,000 roles, even as it reported a 101% increase in pre-tax profits. It has also doubled its planned branch closures, with 200 more set to vanish from High Streets by the end of 2017.
The bank attributed the cuts to changes in people’s banking habits, and the effects of interest rates remaining low for the foreseeable future. Lloyds is already carrying out 9,000 redundancies and 200 branch closures.
It announced those cost-cutting measures in 2014. The bank confirmed that the decision to make further cuts was taken before the EU referendum on 23 June. The news of fresh job losses came as Lloyds reported a £2.5bn pre-tax profit for the half year to the end of June 2016.
In the same period last year, it made £1.2bn. The profits rise was largely due to a sharp drop-off in payment protection insurance (PPI) compensation payouts, which dented previous profits.
PPI has cost the bank more than £16bn since 2011. Lenders are expecting the scheme to be wrapped up soon.
