A BANK which has a branch in Barry is cutting 3,000 jobs and shutting 200 branches across the UK.

Lloyds Bank, which has a store on Holton Road in the town centre, said the cost-cutting programme is in response to an expected cut in interest rates following Britain's decision to leave the European Union.

It is not yet clear which stores will be affected but the extension of the programme will see the new cuts come into effect by the end of 2017.

The Bank of England is widely expected to cut interest rates from 0.5 per cent to 0.25 per cent next week as the fallout from the Brexit vote intensifies.

Lloyds is targeting £1.4 billion in cost savings by the end of next year.

The total number of jobs cut since the announcement of an efficiency drive in 2014 will stand at 12,000 by the end of next year.

The latest 200 branch closures come on top of another 200 already earmarked for closure at Lloyds, which is nine per cent owned by the UK Government.

The bank made the announcement alongside results for the first half of the year, which saw statutory profits more than double to £2.5 billion but it warned that Brexit could have an adverse impact on its future performance.

A spokesman for the bank said: "Given the uncertainty, it is too early to determine the impact on our formal longer term guidance at this stage.

However, while the business will remain highly capital generative, it is possible that this capital generation may be somewhat lower in future years than previously guided."