Lloyds reports 13% drop in gross mortgage lending
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Lloyds Banking Group has reported a £3.3bn loss for the first six months of the year and gross mortgage lending of £12.9bn, compared to £14.9bn in the first half of 2010.
Profits excluding the £3.2bn earmarked for PPI liabilities were £1.1bn.
The bank announced in May that it was setting aside £3.2bn to pay customers who had been mis-sold payment protection insurance.
Its £12.9bn of gross mortgage lending was equivalent to a market share of over 20%.
The proportion of the mortgage portfolio with an indexed LTV of greater than 100% decreased to 12.2%, while the value of the portfolio with an indexed LTV greater than 100% and more than three months in arrears decreased slightly by £0.1bn and is now £3.1bn, but still represents 0.9% of the portfolio.
The average LTV on new mortgage lending in the first half of the year was 61.3%, compared with 60.9% for 2010.
And the percentage of mortgage cases greater than three months in arrears, excluding repossessions remained at 2.3% at June 30 2011 compared to 31 December 2010.
The proportion of mortgages on standard variable rate, or equivalent products, now stands at 52% and Lloyds says this is expected to rise only modestly during the remainder of 2011.
António Horta-Osório, group chief executive at Lloyds, says: “We delivered a resilient first half performance, despite the ongoing challenges of economic and regulatory uncertainty, and have made substantial progress in restructuring and de-risking the group.
“I expect the actions we are taking, as detailed in our Strategic Review announcement, to enable us to create a high performance organisation over time and deliver the best from our franchise for both our customers and our shareholders.”
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Readers' comments (5)
Graham Kennedy | 4 Aug 2011 9:05 am
High Performance Organisation. Who is this guy kidding? He can expect but without better mortgage rates, lower product fees and better service he is wasting his time!
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John Lacy | 4 Aug 2011 9:10 am
Can we trust any of the statistics we are being told. Santander gross lending down 21%, Northern Roock down 25% Lloyds Down 13% Barclays down 10%.
All the info from BBA and the CML looks very suspect on this basis.
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Anonymous | 4 Aug 2011 9:16 am
Lenders will learn the hard way just how important the intermediary mortgage market was to their business, however, I fear by then it will be too late.
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Swanny | 4 Aug 2011 9:55 am
Good
Maybe they will realise how effective the broker channel is. Rather than relying on their highly unmotivated staff and branches.
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sandyb | 4 Aug 2011 10:19 am
The people within Lloyds who agreed the purchase of the HBOS group should be convicted of gross negligence, probably the worst bank merger in the history of banking.
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