Lloyds cuts 3,000 jobs as Brexit fears take shape

[webfact]

Lloyds cuts 3,000 jobs as Brexit fears take shape

LONDON (AP) — Lloyds Banking Group says it is cutting 3,000 more jobs and closing an additional 200 branches as it adjusts to changing consumer behavior and the uncertainty created by Britain's decision to leave the European Union.

The announcement Thursday comes despite what CEO Antonio Horta-Osorio described as "robust" underlying profit of 2.1 billion pounds ($2.8 billion) in the second quarter. But he added that following the EU referendum the outlook for the economy is uncertain and slowing growth "seems likely."

Laith Khalaf, a senior analyst at Hargreaves Lansdown, says Lloyds is more exposed than other banks to leaving the EU "because it is so heavily plugged into the U.K. economy, and the Brexit vote has raised a dust cloud of uncertainty around the future economic prospects for the country."

-- (c) Associated Press 2016-07-28

[Usernames]

Somebody saw an excuse to downsize with more automation on the horizon.

[SgtRock]

All to do with Brexit.

Nothing to do with the new phone apps that are killing high street branches and internet banking.

[colinneil]

Brexit had nothing to do with Lloyds downsizing.

This was on the cards before brexit, just using it as an excuse.

[nausea]

I agree, an excuse to downsize.

[Prbkk]

All to do with Brexit.

Nothing to do with the new phone apps that are killing high street branches and internet banking.

Meanwhile we still have passbooks in Thailand, c 1960

[shirtless]

This is a story we will be hearing more and more often in the future.

[rockingrobin]

Brexit had nothing to do with Lloyds downsizing.

This was on the cards before brexit, just using it as an excuse.

Indeed, not forgetting in 2014 Lloyds announced 9000 staff losses and 200 branches, so in total over a 2-3 yr period thats 12000 staff and 400 branches.

[Chicog]

2.1 Billion profit and they still put people out of work.

Money Money Money.

[Laughing Gravy]

Lloyd's are a disgrace. When they were with TSB the government had to bail them out. sadly I am stuck with these thieves, as a bank in the UK. I wish they were 100 percent privitised. Like the rest of the banking system they are leeches and suck the people dry.

[bkkcanuck8]

All to do with Brexit.

Nothing to do with the new phone apps that are killing high street branches and internet banking.

Umm, Internet banking effect was at least 15 years ago, ATMs even longer. Many banks (at least in Canada) did considerable downsizing to the branch network long ago due to these effects. They eventually reversed some of the pushing of customers away from branches because the branch by not having the network to pull them in there were secondary knock-on effects with regards to other financial service offering etc.

What I am reading from you is the the UK is a third world country when it comes to financial services and modern technology and only catching up now.

Sorry, I just don't buy your theory. (Banks and automation are my primary source of income for most of my working life).

[JetsetBkk]

Ah! "Lloyds" - that wonderful old British bank, with it's wonderful old British CEO "Antonio Horta-Osorio".

[bkkcanuck8]

Brexit had nothing to do with Lloyds downsizing.

This was on the cards before brexit, just using it as an excuse.

Indeed, not forgetting in 2014 Lloyds announced 9000 staff losses and 200 branches, so in total over a 2-3 yr period thats 12000 staff and 400 branches.

It is very plausible, or it could be that they forecast (not necessarily that it is going to be reality) that there will be additional effect from brexit. If it were from brexit itself I would expect downsizing in London and some upsizing elsewhere.

I am wondering though if the branch closure may be more caused by the zero interest rate environment, and now the expected downturn in housing.... (I don't know Lloyds business area). Deposits have traditionally been a source of low cost cash which was in the past coveted -- with zero interest rates and being able to get cash at next to nothing anywhere.... and seemingly no change in sight.... (along with less mortgage income and more bad mortgages coming) that they could be just changing the mix.

I do wonder though if they might go to far with "reconfiguring" the branch network. Easy to close, harder to reopen if they eventually need them back (because if other banks have branches in those areas they might just change banks). I, like many of my generation may be totally comfortable doing everything online (from shopping to banking).... I still tend to go out and kick the tires even if I do buy it online... with a branch gone, I might just walk in somewhere else.

Edited July 28, 2016 by bkkcanuck8

[bkkcanuck8]

One thing to keep in mind is that the fine tuning of the already existing downsizing of the branch network plan may have been adjusted because of brexit, but it does not mean that all or even a majority of the 3,000 positions are being made redundant because of brexit. i.e. the change in plans might have been accelerated because of the need to re-evaluate the plans due to brexit planning, but there could be 30 different contributing factors of which you are only going to give one or two in a press release.

If I am reading it right, Lloyds is heavily into mortgages (and usually deposits).... and brexit itself will continue to put pressure on the interest rate environment for the foreseeable future (across Europe) that along with the consensus that the UK may be heading into a recession (maybe accelerated by brexit) and the associated bad mortgages may (I say may) be a major contributing factor for the additional changes to the branch network.... (a 4% change to the head-count done by next year sometime - so not an immediate panic slash and not really that substantial ... except of course to those made redundant).

This adjustment though is not where I would expect a majority of the effect, since most of this adjustment is focused at domestic business - not the EU related business.

BTW, IMHO the QE and ultra low interest rate environment that has been created is an absolute disaster....

Edited July 28, 2016 by bkkcanuck8

[bubba1]

Just the first of many. The UK will be the next North Korea

[SgtRock]

All to do with Brexit.

Nothing to do with the new phone apps that are killing high street branches and internet banking.

Umm, Internet banking effect was at least 15 years ago, ATMs even longer. Many banks (at least in Canada) did considerable downsizing to the branch network long ago due to these effects. They eventually reversed some of the pushing of customers away from branches because the branch by not having the network to pull them in there were secondary knock-on effects with regards to other financial service offering etc.

What I am reading from you is the the UK is a third world country when it comes to financial services and modern technology and only catching up now.

Sorry, I just don't buy your theory. (Banks and automation are my primary source of income for most of my working life).

I do not really care what you buy.

From the FT. 10 March 2016.

Growth of mobile phone apps threatens UK bank branches

More customers turn to phones for access to accounts and lenders cut back on high street presence

https://next.ft.com/content/a7d81bb0-e609-11e5-bc31-138df2ae9ee6

It has been going on since at least 2014, but as a font of all knowledge you already know that. Right ?

Edited July 28, 2016 by SgtRock

[bkkcanuck8]

All to do with Brexit.

Nothing to do with the new phone apps that are killing high street branches and internet banking.

Umm, Internet banking effect was at least 15 years ago, ATMs even longer. Many banks (at least in Canada) did considerable downsizing to the branch network long ago due to these effects. They eventually reversed some of the pushing of customers away from branches because the branch by not having the network to pull them in there were secondary knock-on effects with regards to other financial service offering etc.

What I am reading from you is the the UK is a third world country when it comes to financial services and modern technology and only catching up now.

Sorry, I just don't buy your theory. (Banks and automation are my primary source of income for most of my working life).

I do not really care what you buy.

From the FT. 10 March 2016.

Growth of mobile phone apps threatens UK bank branches

More customers turn to phones for access to accounts and lenders cut back on high street presence

https://next.ft.com/content/a7d81bb0-e609-11e5-bc31-138df2ae9ee6

It has been going on since at least 2014, but as a font of all knowledge you already know that. Right ?

Turn to phones from what? From an ATM machine (of which there does not need to be a branch)? From the internet? Or they waited for the phone to stop going into the branch to access their accounts?

[baboon]

This is a story we will be hearing more and more often in the future.

...From other lying scoundrels.

[awayego]

Lloyd's are a disgrace. When they were with TSB the government had to bail them out. sadly I am stuck with these thieves, as a bank in the UK. I wish they were 100 percent privitised. Like the rest of the banking system they are leeches and suck the people dry.

Not just Lloyds, RBS too, along with many other multi-national financial institutions, were a major contributor to the crash of 2008.

I worked for both in the sixties, sad to relate now, when RBS in particular was a byword for prudence and good governance. Until greed (and 'Sir' Fred Goodwin) took over – the rest is shameful history for which we are still paying, while banks are back to handing out huge bonuses to their top execs.

I have to agree, “they are leeches and suck the people dry“.

No doubt Lloyds and others will use 'Brexit' as an excuse to downsize but I also believe that there will be many more job losses and diverted investment as a direct result of 'Brexit'.

There is still time for our politicians to come to their senses and end this ridiculous farce.

Unfortunately, common sense and integrity aren't usually associated with politicians!

[williamgeorgeallen]

Somebody saw an excuse to downsize with more automation on the horizon.

good point. seems pretty soon to be downsizing. britan probably about a couple years from actually leaving. wont be surprised to see thailand blaming brexit for its faltering economy soon as well.

[i claudius]

They have just admitted that it really has nothing to really do with Brexit .

[Mangostin]

Ah! "Lloyds" - that wonderful old British bank, with it's wonderful old British CEO "Antonio Horta-Osorio".

...and with a wonderful Saxe-Coburg Gotha in charge, heil mein England, let's take our Britishness back, nevermind the jobs

[smotherb]

Ah! "Lloyds" - that wonderful old British bank, with it's wonderful old British CEO "Antonio Horta-Osorio".

And why not, they have her majesty Elsa Sachsen-Coburg und Gotha

[neverdie]

It's Ben Dover time for the workers again.......meantime, the big boys take a bonus for #ucking the little guy up the blurter.

Unbalanced this world. Too bad I guess.

[elgordo38]

Somebody saw an excuse to downsize with more automation on the horizon.

Your reasoning is better than the Brexit fear. They always need an umbrella to hide under.

[pennine]

On ‎2016‎/‎07‎/‎28 at 7:18 PM, Prbkk said:

Meanwhile we still have passbooks in Thailand, c 1960

Kasikorn bank have a very good mobile banking site.

[Andaman Al]

Agreed with everyone that intimates that this is simply an excuse! Shame on them.