Lloyds to cut 9,000 jobs as third quarter profit rises

U.K. taxpayer-backed lender Lloyds Banking Group has confirmed its plans to cut around 9,000 jobs and as it reported a rise in underlying profit in the third quarter when compared to a year ago.

The group, which is still 25 percent owned by the the U.K. government, also said it would set aside a further £900 million to cover the mis-selling of payment protection insurance to customers.

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The bank is investing billions in mobile an online banking and plans to close as many as 150 branches over the next three years as it automates more functions. The lender said it plans to invest £1 billion in overhauling its technology.

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The group's underlying profit rose to £2.16 billion ($3.48 billion) in the third quarter of this year up from £1.52 billion over the same period last year.

Chris Ratcliffe | Bloomberg via Getty Images

Shares in the bank were under pressure on Monday after it passed European stress tests by the narrowest margin among U.K. banks. The bank continued to fall on, Tuesday, with shares down over 1.5 percent shortly after market open.

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Lloyds said they remained hopeful of paying out a 2014 dividend for despite scraping through the tests and is seeking permission from the U.K. regulator to pay a "modest" dividend" this year.

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