Shrinking Lloyds to close ‘modest’ equity marketing unit

“As part of our ongoing plans to simplify our business model, we have decided to withdraw from the equity market,” said Lloyds Banking Group in a statement.

“This is a strategic decision based on a refocusing of efforts against our core strengths of providing debt financing solutions to UK customers.

“Our equity markets business is modest with a small market representation. We are making every effort to offer redeployment opportunities to affected employees.”

Earlier this month, Lloyds announced 200 job cuts at its insurance arm. The bank has cut more than 26,000 jobs since the start of the financial crisis.

Lloyds, which rescued ailing rival Halifax Bank of Scotland at the height of the financial crisis, recently agreed with the Government to increase business lending and cut bonuses.

Under the deal dubbed Project Merlin, Britain’s big banks agreed to boost overall lending to businesses from £179bn in 2010 to £190bn this year, an increase of six per cent.