London: The Lloyds Banking Group planned to cut 5,000 jobs in its insurance, retail and administration departments by the end of 2010. The bank had already laid off 8,000 employees in the beginning of 2009.

Lloyds is continuing to integrate HBOS into its operations after the government brokered the ailing bank's takeover by Lloyds. At the same time, conditions in the British retail banking market remain challenging. "As long as labor markets continue to deteriorate, there is more risk for banks because of potential mortgage and credit card defaults," said Andrew Popper, Chief Investment Officer at SG Hambros Bank in London.

In separate announcements, HSBC and Barclays said that it was too early to announce a recovery of the retail banking market. Barclays said that its profit for the third quarter fell to ($1.8 billion), down 54 percent from a year ago, because of steeper charges for losses on loans.

In contrast, HSBC, which has a much smaller exposure to the British retail market than its two rivals, said that its profit for the quarter was 'significantly ahead' of the year-earlier period and loan-loss provisions declined. The bank will release detailed figures when it reports its six-month and full-year results in March.

"I believe that the biggest jolt has now passed through the global economy. But it is too early to claim victory, especially while unemployment is still rising in the West," said Michael Geoghegan, HSBC Chief Executive.