Lloyds share price: Lender confirms job losses as profits jump

on Oct 28, 2014
Updated: Oct 21, 2019

iNVEZZ.com, Tuesday, October 28: Lloyds Banking Group Plc (LON:LLOY) saw its underlying profit jump 35 percent during the nine months to September 30, 2014, with the lender benefitting from reduced costs and lower impairments. The bank, however, took another £900 million charge for the mis-selling of payment protection insurance (PPI). 

The FTSE 100 lender, which is still 25 percent-owned by the UK government, this morning confirmed that it would shed a further 9,000 jobs and close about 150 branches as part of a digital revamp.
Lloyds’ share price has lost more than one percent at the opening bell in London this morning.
**Third-quarter results**
Lloyds announced in a statement today that its underlying profit had climbed 35 percent to £5.97 billion in the first nine months of the year, with a one percent drop in income offset by a three percent reduction in costs and a 59 percent improvement in impairments. On a statutory basis, Lloyds’ profit dropped five percent to £1.61 billion as compared with the prior-year period, with the result reflecting charges relating to legacy provisions of £2 billion, including an additional £900 million for PPI in the third quarter.

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Commenting on the results, Lloyds’ chief executive António Horta-Osório noted that the business was “performing strongly and we are well positioned to continue to support and benefit from UK economic growth”.
Lloyds, which is still part-owned by the UK government, added that it was in ongoing discussions with the Prudential Regulation Authority (PRA) about restarting dividend payments but provided no further details or forecasts on when that might happen.

**Strategy update**
The FTSE 100 lender today confirmed plans to cut 9,000 jobs and close 150 branches over the next three years in an effort to cut costs and invest in digital technology. Lloyds noted that it expected to achieve run-rate savings of £1 billion per year by the end of 2017 and forecast committing over £30 billion of additional net lending to UK personal and commercial customers.

“Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK focused retail and commercial bank,” Horta-Osório pointed out in the strategy update, adding that the next phase of Lloyds’ strategy “builds on these strong foundations to meet the rapidly changing needs of our customers, and sets out how we plan to grow the business to become the best bank for customers and deliver superior and sustainable returns for our shareholders”.
**As of 08:00 GMT, buy Lloyds shares at 75.36p.**
**As of 08:00 GMT, sell Lloyds shares at 75.35p.**


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