Lloyds Banking group is cutting a further 530 jobs, this time in its customer services and retail units, as part of its continuing integration of HBOS.

The latest redundancies are in addition to the 625 job cuts announced last month at the group’s acquisition finance and commercial banking units.

Lloyds also cut 985 positions at its car finance operation in April.

In the latest round of redundancies about 210 positions will be removed from its customer services centre in Chatham, Kent, which will close later in the year.

The remaining positions will be cut in the group’s sales, mortgages and network support units.

Lloyds’ takeover of HBOS is the source of much controversy after the group suffered a £9.6 billion loss last year, higher than had been expected.

Writedowns on HBOS’s mortgage book are expected to increase this year, while Sir Victor Blank, who is seen as the architect of the takeover, said last month that he would leave his position as Lloyds Banking Group’s chairman by June 2010.

The board will face investors at its annual meeting on Friday, when shareholders are expected to challenge directors over the decision, brokered by Gordon Brown, to rescue HBOS.

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