Lloyd's to close 200 branches
27 October 2014
UK's state-backed Lloyds Banking Group is expected to reveal closure plans for 200 branches Sky News reports.
The closures would see 9,000 jobs go, citywire reported. Sky News claimed the branches would be closed by the end of 2017.
According to commentators the branches that would go, would likely be in urban areas where the bank had a number of branches operating in close proximity to each other.
Lloyds operates around 1,300 branches under its brand, and an additional 960 using the Halifax name.
Earlier this year Lloyds spun off 630 branches under regulatory pressure, as a separate bank TSB.
The news comes following the lender just about passing the Europe's bank stress test.
The European Central Bank and European Banking Authority called for the lender to have a Tier 1 Capital ratio of 6.2 per cent in adverse economic scenarios, while the threshold for a bank posing a threat to the financial system was 5.5 per cent.
Hermes senior credit analyst Filippo Alloatti beleived the result would have implication for the resumption of Lloyds dividend, citywire added.
According to Alloatti, Lloyds had a rather tight 'pass' mark, probably on its lack of diversification, and may have to give up its aspirations of resuming a dividend.
According to The Herald Scotsman, the announcement would likely to overshadow figures expected to show more progress on a trading front as economic conditions improved.
According to Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, exposure to both the improving UK and Irish economies should again see the bank reporting reduced bad debt impairments.
He added that investors would be looking at prospects for resumption of dividend payments after more than six years.