Lloyds Bank to axe 3,000 jobs and shut 200 branches amid Brexit fallout

Lloyds Banking Group is to axe 3,000 jobs and close 200 branches as it prepares for a cut in interest rates following Britain's decision to quit the European Union.

The lender made the announcement alongside results for the first half of the year, which saw statutory profits more than double to £2.5 billion.

But the group warned that Brexit could have an adverse impact on its future performance.

The Bank of England is expected to cut interest rates from 0.5% to 0.25% next week as the fallout from the Brexit vote intensifies.

In a statement, Lloyds Banking Group said:

The news follows an announcement by the lender in April that it planned to axe hundreds of jobs and close 21 branches during July.

The part state-backed bank, which revealed a cost-cutting programme in 2014, said the job losses will come into effect by the end of 2017.

Lloyds is targeting £1.4 billion in cost savings by the end of next year.