Lloyds to cut 3,000 jobs in expense push after Brexit vote

London

LLOYDS Banking Group plc will eliminate an additional 3,000 jobs and a further £400 million (S$712 million) of annual expenses, as the UK's largest mortgage lender attempts to stave off a "Brexit"-induced earnings slump.

Pre-tax profit, excluding one-time items, fell to £4.16 billion in the first half of the year, from £4.27 billion a year ago, the London-based bank said in a statement on Thursday.

That beat the £4.06 billion average estimate of seven analysts surveyed by Bloomberg News.

A potential economic slowdown in the wake of Britain's vote to leave the European Union (EU) a month ago is adding to the pressure that persistently low interest rates have put on chief executive officer Antonio Horta-Osorio's plans to boost earnings. Slashing expenses will help counter a reduction in customer demand for loans and a squeeze on profit margins as the Bank of England considers reducing its key interest rate beyond the current record …