View more on these topics

Lloyds is back in the black

Lloyds Banking Group has returned to profit for the first three months of the year, recovering from the £6.3bn loss it made in 2009.

The bank, 43% owned by the taxpayer, has released a trading statement this morning announcing its return to profit thanks to a slow-down in the level of its bad debts.

Lloyds group says it has seen lower impairments across its retail secured and unsecured lending portfolios.

The level of impairments for its wholesale division have also dropped sharply compared to both the previous quarter and the bank’s own expectations for the first three months of this year.

Although lending has remained flat during Q1, customer deposits have grown over the same period by over £5bn.

The bank says that assets within its run-off portfolios are continuing to reduce, though it admits this is at a slower pace than last year.

It is encouraged by what it sees as improving conditions in the wholesale funding markets, and is due to launch and price a securitisation deal backed by mortgages from Lloyds TSB and Cheltenham & Gloucester at the end of this week.

Eric Daniels, group chief executive at Lloyds Banking Group, says: “The group is continuing to see positive trends in line with our recent trading update on March 19 2010.

“In particular, impairments have slowed significantly in the first few months of the year giving us confidence that we will achieve a better financial performance than previously guided.

“I am pleased to report that we returned to profitability in the first quarter and expect this momentum to be sustained throughout 2010.”

Based on the first 10 weeks of the year, Lloyds group put out an earlier trading statement in March saying it was confident that the bank would return to profit this year.

Recommended

Well done GEMHL for kick-starting the specialist sector

I would like to congratulate Mark Snape and his team at GE Money Home Lending for not only surviving the credit crunch but for striving to get specialist lending back on the map in 2010. Obviously underwriting is going to be tight, due to the restrictions set by credit risk, but at least it is […]

Halifax’s latest fixed product will not be attractive to FTBs

I was interested to read last week that Openwork is offering an exclusive two-year fixed rate product from Halifax with a 90% LTV at 6.49%, aimed at home movers and first-time buyers (Mortage Strategy Online). Unless big lenders return to sensible lending aimed at first-time buyers, they will not be interested in returning to the […]

Mortgage deal for Lloyds current account holders

Lloyds TSB is offering its current account customers a 0.2% reduction on mortgage rates if they deposit at least £1,000 a month and take out a new mortgage with it.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Mike The Mortgage Man 27th April 2010 at 2:21 pm

    Well done Lloyds! Little or no competetion in the market plus record profit margins and you still manage to queeze out a profit.
    Must not grumble though as it is a state bank. You can however bet your bottom dollar that they will have over provided for bad debts so that they can make “record” profits for the new investors when the day arrives.

  • Paul 27th April 2010 at 9:45 am

    Great news, a part state owned bank is back to profit, all good news for the share price. Now all we need is for the politicians and press to stop moaning about bankers and their bonuses. Staff at Lloyds, whether highly paid or not have done exactly waht was required of them which is to get the company back to profit. Soon enough the shares can be offloaded by the government for a tidy profit which will no doubt be squandered on some useless department. If we do not allow the bankers to get on with their jobs for the state owned banks, and earn any bonuses their contracts allow, then they will jump ship to a non state owned institution and increase their profits which will impact on the state owned. Lets move on and not dwell on the past.