Lloyds is slashing 3,000 jobs and 200 branches to deal with Brexit fallout

State-owned lender Lloyds Bank is cutting 3,000 jobs and closing 200 branches as part of a cost-cutting exercise in the wake of Britain’s vote to leave the European Union.

Antonio Horta-Osorio, Lloyds CEO, warned that a “deceleration” of UK economic growth “seems likely” in the bank’s second quarter results statement.

“Following the EU referendum the outlook for the UK economy is uncertain and, while the precise impact is dependent upon a number of factors including EU negotiations and political and economic events, a deceleration of growth seems likely,” Horta-Osorio says.

“For Lloyds, our simple and low risk, UK focused, retail and commercial business model, together with the simplification and transformation of the business in recent years, position us well to continue doing the right thing for our customers and deliver strong returns for shareholders,” Horta-Osorio added.

The bank said the cuts would be implemented before the end of 2017.

The lender, which is 10% UK taxpayer-owned, raised its dividend after reporting a hike in pre-tax profits from £1.2 billion to £2.5 billion ($3.1 billion) for the first half of the year.

The bank said the profit boost was “driven by a significant reduction in conduct charges and the gain on sale of our stake in Visa Europe,” in the statement.

Shares in Lloyds plunged on news that the UK had voted to leave the EU in the June 23 referendum, with investors concerned the bank would be exposed to any domestic economic downturn.

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