The lender has not made an official decision on the discontinuation of the brand, but stressed that the change would not lead to changes in customer account numbers, or their protection levels under the Financial Services Compensation Scheme.

The Sun reported that Lloyds is planning to announce an end to the banking arm this summer. It said Halifax would cease taking on new customers under the brand by October this year.

It is understood that the Bank of Scotland brand would not be affected by any changes.

Lloyds Banking Group declined to comment on the news.

In October last year, the lender reported a drop in third quarter profits, after setting aside a substantial provision to cover potential costs from a probe into motor finance commissions. This came a month after the firm announced it would close 13 Bank of Scotland branches north of the border.