Lloyds Banking Group has faced criticism from trade unions over its plans to expand a technology centre in India, even as it announced a £13 billion investment strategy spanning the next four years. The FTSE 100 lender said the investment aims to make banking “simpler, safer and more connected” for its 28 million customers, including the development of a “smart wallet” leveraging technology acquired through its purchase of Curve, a digital wallet app.
The plan includes scaling up operations at Lloyds’ Hyderabad site, where it currently employs around 5,000 workers and is advertising for more than 100 new software engineering roles. Critics, including the Affinity union, argue the move represents a loss of well-paid jobs that could be created in the UK instead. Mark Brown, Affinity’s general secretary, expressed concerns that offshoring key knowledge-based work undermines the UK economy, especially as Lloyds generates 96 percent of its profits within the country.
Lloyds, however, has stated that the new vacancies in India primarily replace roles previously contracted to local suppliers and that no existing UK jobs are being transferred abroad. The bank also has approximately 1,000 technology and data vacancies within the UK and plans to grow its domestic workforce in the coming years. Compared with some rivals, Lloyds reportedly employs fewer technology staff in India.
The announcement accompanied the release of Lloyds’ half-year financial results, which showed a 23 percent rise in statutory profit before tax to £4.3 billion, surpassing market expectations. The bank’s net interest income increased by 9 percent to £7.3 billion, contributing to a total net income of £9.7 billion. Lloyds attributed the profit growth to higher revenues and cost reductions, while slightly lowering its provision for expected loan losses to £3.3 billion.
Following its strong performance, Lloyds declared a 30 percent increase in its interim dividend, raising the payment to 1.58 pence per share, and announced a £1 billion share buyback programme. Chief Executive Charlie Nunn described the results as reflecting “sustained strength” with continued income growth, improved operating leverage, and robust credit performance. He highlighted the “clear benefits” of applying agentic artificial intelligence to enhance customer advice and guidance.
The bank outlined plans to achieve approximately £2 billion in gross cost savings by automating processes and boosting workforce productivity through technology. Lloyds acquired Curve last November for £120 million, with the intention of expanding payment flexibility for customers. Curve’s app allows users to switch payments between debit and credit cards post-purchase, potentially reducing fees, and includes rule-setting features to control transaction types.
Additional elements of the strategy include developing an in-app transport platform designed to integrate vehicle finance, leasing, insurance, energy, mobility, and servicing products. Lloyds also committed to doubling the size of its small business relationship team and to issuing new loans exceeding £45 billion. The bank plans to increase its rental home portfolio from 10,000 to 20,000 units and aims to reduce residential property transaction times from several weeks to just days.