Lloyds shares rise on restructuring announcements

10 June 2009 / by Rebecca Sargent
Shares in Lloyds Banking Group rose by more than four per cent this morning following its recent restructuring announcements and rights issue success.

Further shake ups are expected from Lloyds Banking Group over the coming months as it attempts to shore up its balance sheet and pay off the Government.

Lloyds announced yesterday that it is closing 164 Cheltenham & Gloucester branches, resulting in more than 1,600 job losses. The total number of job losses at Lloyds Banking Group since it merged with HBOS now exceeds 5,000, and this is expected to increase as it continues with its restructuring.

In addition to the C&G closures, Lloyds revealed yesterday that it will be restructuring its Black Horse Personal Finance department, and reports in the Financial Times today suggest that the banking giant is in talks over the part sale of its investment management arm.

Speaking of the recent disruption at Lloyds Banking Group, and what it means for the future of banking, Louise Cuming, head of mortgages at moneysupermarket.com said:

"There is no doubt there will be further consolidation in the future, probably at the expense of consumer choice and further down the line I wouldn't be surprised if some of the brands disappear altogether."

Derek Simpson, general secretary at trade union Unite added yesterday: "This is a truly dark day for the financial services sector across the country."

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