Lloyds Banking Group is cutting 3000 jobs and shutting 200 branches as it prepares for a cut in interest rates following Britain's decision to quit the European Union, it said.

The part state-backed bank said a cost-cutting programme announced in 2014 will be extended and the "expected lower for longer interest rate environment" will see the new cuts come into effect by the end of 2017.

The lender announced in April plans to axe hundreds of jobs and close 21 branches during July.

The Bank of England is expected to cut interest rates from 0.5% to 0.25% 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.