Lloyds Banking Group PLC is planning to scale back its foreign exchange business by 2020-end amid struggles in profitability and competition, Reuters reported, citing three sources familiar with the matter.
The U.K. lender plans to limit its directly managed forex offering to G-10 currencies and run most of the business electronically, resulting in job cuts, mostly to the corporate forex sales desk, one of the sources said, while another source said Lloyds had already started making cuts and that about 10 roles are "at risk."
A third source said the staff cuts are likely to be finalized before June. It is unclear how many roles would ultimately be cut and no data on the actual staff numbers of Lloyds' forex business is immediately available, the newswire said.
The move would form part of a broader retreat by banks from forex trading due to shrinking margins, Reuters noted. Lloyds' currency trading business is estimated to be worth roughly $200 million.
A Lloyds spokeswoman said the bank is committed to clients of the business across major and emerging economies and has no plans to change its services, the report added.