Lloyds is also believed to be considering plans to strip away layers of management in moves likely to spell hundreds of job cuts at the London head office. Thousands more may be cut across the UK and internationally, with the total figure estimated at up to 15,000.
Lloyds, which is 41 per cent owned by the state, has already axed nearly 28,000 jobs over the past two years in moves to save £2billion following its ill-fated merger with Halifax-owner HBOS.
Horta-Osorio is to update the City on strategy on June 30. He is not expected to put a figure to job cuts but will set targets. All 30 overseas operations are expected to be put under review although it is believed Horta-Osorio is keen to retain those in fast-growing emerging markets to provide a basis for future inter- national growth. He is also likely to look at the bank’s technology.
Lloyds has already axed nearly 28,000 jobs over the past two years
The move came after Lloyds started the process to sell 632 branches and a chunk of its mortgage operations to meet European Commission rules on state aid.
Sir Richard Branson’s Virgin Money and NBNK, a bidding vehicle run by Lord Levene and led by former Northern Rock chief executive Gary Hoffman, have already declared an interest in bidding. However it was reported yesterday that Co-operative Financial Services is also keen to have a look and is close to appointing investment bank Credit Suisse to advise on a possible bid.
The bank may yet be forced to sell more branches if Chancellor George Osborne accepts a recommendation from the Independent Commission on Banking that it should do so.
Osborne is also expected to fire the starting gun on the sale of nationalised bank Northern Rock on Wednesday at his annual Mansion House speech.
It is believed the Government will solicit bids after adviser Deutsche Bank said a straight sale was the most cost-effective way for the state to relinquish control, rather than floating the bank on the stock market.
Plans to remutualise the bank have also been vetoed, although it could still end up as mutual if building societies such as Coventry or Yorkshire succeed in taking it over. Other potential bidders include Virgin Money.
The Rock was nationalised in February 2008 after it collapsed in the credit crisis and endured the first run on a bank for 150 years.
It has since been split into two, with the “good parts” forming a mortgage and savings bank called Northern Rock plc and Northern Rock Asset Management holding the higher risk loans.