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Lloyds to Close 100 Branches: A Step Toward Digitization?
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U.K.-based Lloyds Banking Group plc (LYG - Free Report) is closing 100 branches, as part of its plan announced last year. The branch closure will affect 54 Lloyds Bank branches, 22 Halifax branches and 24 Bank of Scotland branches.
The branch closures, expected to occur in third-quarter 2017, will lead to 400 job cuts. However, as Lloyds plans to create nearly 90 new positions, the net impact will be lower.
Lloyds’ spokesperson said that the move is in response to the changing customer preference in doing banking transactions. Further, with more banking transactions being done online, the company intends to lower staff to two with tablets in some of the branches.
These smaller branches will have no counters and customers will be doing transactions through self-service machines. Further, mortgage advisors will be available via video links.
Lloyds has been striving hard to control expenses and strengthen profitability. Through the branch closure strategy, the company expects to enhance operating efficiency.
Other major global banks taking similar measures include The Royal Bank of Scotland Group plc and HSBC Holdings plc (HSBC - Free Report) . In Mar 2017, Royal Bank of Scotland announced its plan to shut down 158 branches which will lead around 362 job cuts. Earlier in Jan 2017, HSBC announced its intention to close 62 branches this year, with approximately 180 jobs cuts. Both the companies cited similar reasons for branch closures.
Over the last one year, shares of Lloyds lost 13% on the NYSE, as against the Zacks categorized Foreign Banks industry’s gain of 29.8%.
Currently, Lloyds carry a Zacks Rank #3 (Hold).
A better-ranked foreign bank is Bank of Montreal (BMO - Free Report) . The company’s shares rose 16.6% over the last six months. The Zacks Consensus Estimate for the stock also increased 4.6% for fiscal 2017, over the last 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Lloyds to Close 100 Branches: A Step Toward Digitization?
U.K.-based Lloyds Banking Group plc (LYG - Free Report) is closing 100 branches, as part of its plan announced last year. The branch closure will affect 54 Lloyds Bank branches, 22 Halifax branches and 24 Bank of Scotland branches.
The branch closures, expected to occur in third-quarter 2017, will lead to 400 job cuts. However, as Lloyds plans to create nearly 90 new positions, the net impact will be lower.
Lloyds’ spokesperson said that the move is in response to the changing customer preference in doing banking transactions. Further, with more banking transactions being done online, the company intends to lower staff to two with tablets in some of the branches.
These smaller branches will have no counters and customers will be doing transactions through self-service machines. Further, mortgage advisors will be available via video links.
Lloyds has been striving hard to control expenses and strengthen profitability. Through the branch closure strategy, the company expects to enhance operating efficiency.
Other major global banks taking similar measures include The Royal Bank of Scotland Group plc and HSBC Holdings plc (HSBC - Free Report) . In Mar 2017, Royal Bank of Scotland announced its plan to shut down 158 branches which will lead around 362 job cuts. Earlier in Jan 2017, HSBC announced its intention to close 62 branches this year, with approximately 180 jobs cuts. Both the companies cited similar reasons for branch closures.
Over the last one year, shares of Lloyds lost 13% on the NYSE, as against the Zacks categorized Foreign Banks industry’s gain of 29.8%.
Currently, Lloyds carry a Zacks Rank #3 (Hold).
A better-ranked foreign bank is Bank of Montreal (BMO - Free Report) . The company’s shares rose 16.6% over the last six months. The Zacks Consensus Estimate for the stock also increased 4.6% for fiscal 2017, over the last 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>