Lloyds TSB staff set for bonanza

The 82,500 staff at Lloyds TSB could pick up around pounds 2,500 each after Britain's biggest domestic bank yesterday announced record profits of pounds 2.51bn for last year. Lloyds is setting aside pounds 100m of its profits to share with employees. Including a profit-related pay scheme and the recently announced an inflation-beating 5 per cent pay rise, the bonanza could add up to 16 per cent to an average salary of pounds 15,500.

However, the news failed to allay union fears about job cuts in the wake of the merger in late 1995 between Lloyds and TSB. Noel Howell of the banking union Bifu said the profit sharing might only be a one-off, which would not increase employees pensionable salary. "They are going to have to go further than that and the key issue is job security." Bifu claims 10,000 jobs and 650 branches are at risk.

The Bill to enable the merger legally to go ahead will have its second reading in early March and the union is lobbying Parliament to include a requirement that local communities are consulted before branches close.

Lloyds axed 4,200 jobs last year and Sir Brian Pitman, who this month became chairman of the bank, defended the cuts. "We get new competitors arriving every week. You only keep jobs by winning", he said. Lloyds warned that further job cuts were in prospect this year.

Sir Brian was speaking as Lloyds unveiled the first full-year results of the combined businesses of Lloyds, TSB and the former Cheltenham & Gloucester building society, acquired for pounds 1.7bn in 1995. Pre-tax profits leapt from pounds 1.65bn to pounds 2.51bn in the 12 months to December, in line with analysts' expectations, although a final dividend of 9p, taking the total to 13.2p, was slightly better than forecast.

Sir Brian said he was aiming to "benchmark" Lloyds against the best companies in America, including Coca-Cola and General Electric. "By benchmarking with these companies, we have raised our standards. We have shot from a higher level than ever before." As part of this, Lloyds has introduced a new measure of its performance, "economic profits", which attempts to factor in the risk-weighted cost of capital, put at 10.1 per cent for the bank. This showed profits rising 69 per cent to pounds 1.06bn last year.

Lloyds said it was setting aside an additional pounds 39m to cover claims following the 1994 pensions "misselling" scandal, taking its total provision to pounds 200m.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Web Developer - PHP

£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...

Ashdown Group: Client Services Manager - Relationship Management - London

£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

Recruitment Genius: Credit Controller / Customer Service

£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...

Guru Careers: In-House / Internal Recruiter

£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...

Day In a Page

Woman who was sent to three Nazi death camps describes how she escaped the gas chamber

Auschwitz liberation 70th anniversary

Woman sent to three Nazi death camps describes surviving gas chamber
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea