Lloyds
Lloyds will close 200 branches and cut 3,000 jobs by the end of 2017Getty Images, iStock

Lloyds Banking Group has unveiled plans to close 200 branches and cull an extra 3,000 jobs after it warned of a slowdown in the wake of Britain's vote in favour of leaving the European Union.

The FTSE 100-listed lender said on Thursday (28 July) that it is targeting a further £400m ($527.2m, €475.7m) in cost savings by the end of next year, in addition to the plan it announced in 2014, which included cutting 9,000 jobs in a bid to save £1bn by the end of 2017.

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," said group chief executive António Horta-Osório.

News of the job cuts came as the banking giant announced it has more than doubled its first-half pre-tax profit, which rose to £2.5bn in the six months to end of June compared with £1.2bn in the corresponding period in 2015.

However, the bank's underlying profits, which strip out exceptional costs, fell to £4.2bn from £4.4bn but managed to beat expectations for a £4bn reading.

The lender, which is 9% owned by the government, reaffirmed guidance for the full year and declared an interim dividend of 0.85p per share, 13% higher year-on-year.