A total of about 5,000 job cuts at Lloyds Banking Group – which is spinning off assets as a condition of receiving bailout cash under EU law – will not affect the UK bank’s private banking operations, the firm told WealthBriefing yesterday.

Lloyds said yesterday that changes to its group operations, insurance and retail divisions will lead to about 5,000 job cuts by the end of 2010, although redeployments, release of contractors and other adjustments means that 2,600 permanent jobs will be axed in total.

A spokesperson said the private banking businesses of Lloyds Banking Group will not be covered by these cuts. Last week, the firm said revenue trends improved at its wealth and international business divisions in the third quarter of 2009 compared with performance in the first half of the year, due to rising customer numbers and stronger markets.

Lloyds has also announced plans to raise a total of at least £21 billion in core capital. It has also unveiled plans to shed assets, such as selling a bank with at least 600 branches and about 19 per cent of the group’s total mortgage assets. Such a business would comprise the TSB brand, branches, savings accounts and mortgages with Cheltenham & Gloucester, as well as various Lloyds TSB branches in England, Scotland and Wales.