Lloyds, which is 40 percent owned by the British government, said the changes are part of a continuing program to integrate operations.

The 450 jobs in check and credit processing are being outsourced to iPSL.

Lloyds Banking Group was created during the banking crisis through a hastily arranged rescue of Halifax/Bank of Scotland by Lloyds TSB.

Toxic assets held by HBOS, particularly by mortgage specialist Halifax, forced the company to seek a government bailout.