Lloyds sees £2.2bn profits in 2010 but market share falls

Lloyds Banking Group last week revealed pre-tax profits of £2.2bn for 2010 compared with a loss of £6.3bn in 2009, but the lender’s share of the mortgage market has shrunk by 2%.

The group achieved a 22.1% share of gross mortgage lending in 2010, down from 24.1% in 2009. Gross new mortgage lending was £30bn in 2010, compared with £34.7bn in 2009, representing one in five of all mortgages in the UK.

Some £5bn of this was for first-time buyers and the lender says it approved eight out of 10 first-time buyer applications in 2010.

The proportion of mortgages on SVRs now represents 48% of out-standing balances.

Meanwhile, the Royal Bank of Scotland revealed last week that its gross mortgage lending fell by 3% in 2010 compared with 2009. The bank lent £18.7bn in 2010.

It blames a weak market in Q4 2010 for the drop in annual gross lending figures. During that quarter RBS retained its 11% market share but gross lending volumes plum-meted 17% on Q3 to £4.4bn.