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Lloyds to save 1.5 bn pounds from HBOS merger

Source: PTI
November 04, 2008 18:14 IST
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British banking major Lloyds TSB expects to save an additional 500 million pounds from its merger with rival HBOS, a move which could affect 30,000 jobs, says a media report.

According to The Times, Lloyds TSB has revealed plans to chop an extra 500 million pounds in costs from its merger with HBOS to create Britain's biggest high street bank that will be known as Lloyds Banking Group.

Lloyds TSB had expected to slash one billion pounds in costs from the expected tie-up.

"However, it said today that it would increase savings to 1.5 billion by 2011, by closing overlapping branches and call centres and ending the use of duplicate computer systems," The Times said in a report published online on Monday.

The report also noted that up to 30,000 jobs could be affected if the merger goes ahead, but Lloyds TSB declined to give a figure on redundancies this morning when it published details of the deal.

The Times said that bulk of the cost savings would come from the retail banking businesses, where Lloyds aims to cut 790 million pounds. It will also chop 235 million pounds from the combined insurance and investment businesses, merging fund management activities and cutting duplicated roles.

"Lloyds also said 430 million pounds will be cut from its wholesale business and international banking," it added.

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