We're unlikely to have seen the back of Lloyds job cuts in Scotland

The 3.2bn loss Lloyds Banking Group posted in its interim management statement may be down to provisions for Payment Protection Insurance and higher than expected losses on its Irish portfolio rather than lack of underlying profitability, but it would be wrong to assume that the shake-up in Scotland is entirely over.

The bank is still looking to cut costs through its integration programme, which is targeted to deliver 2bn of savings every year by the end of 2011. Currently, it's saving around 1.6bn annually, so it's safe to say that at more cuts seem likely in the near future, albeit on a slower basis than last year.

Headcount has shrunk at Lloyds by over 27,000 since it took over HBOS in 2008, and the integration continues to prove costly for the bank. In the first quarter of 2011, it spent a hefty 333m in "one-off integration costs", which include severance payments as well as IT and other expenses related to implementation.

There's also the fact that Lloyds is still divesting non-core assets, and it's possible that Scotland could feel the impact of this going forward.

Last week there was speculation that Lloyds was set to sell both its pensions and insurance business, Scottish Widows, and its asset manager Scottish Widows Investment Partnership (SWIP).

Inevitably, there would be some fall out from the sale in terms of job losses. Scottish Widows has been bolstering its actuarial, risk and accountancy headcount over the last year - primarily driven by Solvency II requirements.

What's more, SWIP was recruiting fairly heavily in 2010, taking its headcount to around 400 in Edinburgh, and has plans to hire between 50-70 people this year. This isn't an ideal time, therefore, to start talking about plans for a sale.