Elsewhere, it unveiled plans to invest in Halifax, Lloyds TSB and Bank of Scotland using savings delivered from a programme of “simplification” that could ultimately see a reduction of some 15,000 roles across the group.
The programme of simplification, involving a restructure of the group’s management teams and an effort to strengthen its balance sheet, will have a significant impact on jobs:
“We expect a reduction of 15,000 roles as a result of the simplification programme over the period,” it stated.
“Where colleagues may be affected, we will use natural attrition and internal redeployment rather than redundancy where possible.”
Lloyds Banking Group plans to double sales and profits from its bancassurance proposition within the next three years as it seeks to take advantage of an “advice and distribution gap” it believes will develop as a result of the Retail Distribution Review (RDR).
It has also set aside some £3.2bn to meet potential compensation costs related to sales of payment protection insurance (PPI).
Bancassurance will be a “core part” of Lloyds’ proposition through its multi-brand retail strategy, it announced this morning.
“We aim to maximise the conversion of our retail banking customers to bancassurance through offering them affordable and relevant advice, taking advantage of the advice and distribution gap we see as being created by the RDR,” it said in a statement.
It said it expects its Scottish Widows’ manufacturing platform to enable it to provide a wide range of products to customers in an “integrated manner, benefiting [Lloyds] in terms of both product innovation and development and in the delivery of products to our customers.”
It added Scottish Widows “remains committed” to the wider intermediary life, pensions and investments market.
Its ambitious investment plans will be delivered, it said, from some £2bn worth of run-rate cost savings achieved before the end of this year and a further £1.7bn in run-rate savings in 2014.
