Lloyds Bank plots “WFH” future to attract best staff and slash offices by 20%

LLOYDS Bank today said it was preparing for a “permanently changed future” as it embraced working from home and said it would slash office space by 20% over three years.

It reported profits for 2020 of £1.2 billion, better than the City expected, and returned to paying dividends following a ban by the regulator on shareholder payouts as the pandemic bit.

A survey of the 65,000 staff shows 77% keen to work from home at least three days a week, something the bank will back in the latest blow to town centres.

Outgoing CEO Antonio Horta-Osorio said the issue will be “critical” for the choices staff make. To attract and keep the most talented staff, Lloyds will be flexible, offering “sustainable workplace solutions” to “attract and retain a more diverse, skilled and future ready workforce”.

Yesterday HSBC said something similar, though it will retain its huge presence in Canary Wharf.

Lloyds said: “By 2025, we aspire to having 50% of senior roles held by women, 3 per cent held by Black colleagues and 13 per cent held by Black, Asian and Minority Ethnic colleagues.”

It will pay a divi of 0.57p a share, a nice if small cheque for the hundreds of thousands of small investors in the bank. The average small investor with 6000 shares gets a £34.20 dividend.

Outgoing chief executive Antontio Horta-Osorio was paid £3.4 million in his last year, down from £4.4 million.

That is his lowest pay since 2012, but does take the total he has received in 10 years to around £55 million.

Lloyds shares have struggled for some time. In the last five years they have fallen 30% compared to a 10% rise in the FTSE 100. Today the stock was up 1p at 40p.

Lloyds profit margin – the gap between what it pays savers and charges borrowers – is at a healthy 2.52%, much higher than smaller rivals can manage.