Lloyds ready to step up jobs and branch cuts

Analysts expect Lloyds chief executive Antonio Horta-Osorio to announce bigger cost savings when the taxpayer-backed bank reveals half-year results at the end of this month.

In April he said plans to reduce costs by £1 billion by the end of next year were running “ahead of plan”.

Out of his original target of cutting 9000 jobs and closing 200 branches, some 7300 jobs have gone and 150 branches have closed.

Horta-Osorio suggested the rate at which people have shifted to electronic banking meant this could be speeded up. Lloyds declined to comment.

But a new target of £1.2 billion of savings with a further 1800 job cuts and extra 40 branch closures by the end of 2017 could be announced at the end of the month.

Like all banks, Lloyds faces pressure on its profit margins if interest rates are cut later this week and could be hit by any slowdown in the UK economy as a result of the vote to leave the European Union.

Lloyds shares rose 1p to 53.6p today, which is well below the 73p average paid by the taxpayer in the £20 billion bailout in 2009.