The integration of Bank of Scotland into the Lloyds Banking Group is also making good progress, the group said, with annual cost savings now £1.57 billion to the end of March. Lloyds said it was on track to deliver £2 billion in cost savings a year by the end of the current financial year. Last month the Independent Commission on Banking (ICB) interim report said Lloyds planned sale of 600 branches did not go far enough to alleviate competition concerns. Lloyds said today it was "surprised" the Interim Report proposed a potential expansion of the 600 branch sale as mandated by the EU under 'Project Verde'. "We believe [this] is not in the interests of our customers and may significantly delay meeting the commitments agreed between the UK Government and the EU," Lloyds said. "We will continue to play a constructive role in the debate and to consult with the ICB during the coming months ahead of the publication of its final report in September."