Jersey branches could be on the Lloyds Bank hit-list for closure

Friday 29 July 2016

Lloyds Bank has revealed its latest “last resort” job-cutting scheme, with a further 3,000 roles and around 200 more branches set to close.

The cuts come despite a reported 101% increase in pre-tax profits. Lloyds yesterday announced they have doubled planned branch closures, with 200 more set to vanish from High Streets by the end of 2017.

It is unclear whether the two Lloyds Bank branches in Jersey will be affected, although spokesman Ed Smith told Express that cuts “could” happen. 

Mr Smith said: “These measures have been taken for a number of reasons. The principal reason is the fact that more customers are turning to our digital channels.

“Branches will be closed largely on the basis of footfall and geographical factors will also be take into account. 

When asked if the cuts will affect Jersey’s branches, he replied: “They could do. As yet we have announced the headline figures, but there is no more detail available. The fact that these changes are going to be made is very much as a last resort and we will always try to keep positions in other areas of the bank. The changes will affect branches as well as head offices.”

Lloyds is already carrying out 9,000 redundancies and 200 branch closures after announcing those cost-cutting measures in 2014.

The decision to make further cuts was taken before the EU referendum on June 23 and news of the latest job losses came as the bank reported a £2.5billion pre-tax profit for the half year to the end of June. In the same period last year, it made £1.2billion.

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 and lenders are expecting the scheme to be wrapped up soon.