Lloyds reports losses of £6.3bn

Lloyds Banking Group has reported a loss of £6.3bn for 2009, compared to a £6.7bn loss in 2008.

On a statutory basis, the group delivered a profit before tax of £1bn for 2009.

This result includes an £11.2bn negative goodwill gain associated with the purchase of HBOS, given the acquistion of the business at half book value in anticipation of the likely losses resulting from their troubled asset portfolios.

There has been a significant increase in impairments, which rose to £24.0bn from £14.9bn in 2008, principally due to the HBOS portfolios and their high level of exposure to commercial property.

Gross new mortgage lending at the group totalled £35bn during 2009, representing a market share of 24%.

The group says it has continued to make good progress in building its mortgage business in a contracting market by focusing on the prime mortgage market, “particularly through its network rather than intermediaries”.

More than 60% of new lending in 2009 being for house purchase rather than for re-mortgage. In March 2009, the group committed to increase its planned gross lending to home buyers by £3bn in the following12 months and say it is on track to deliver this commitment.

The average LTV ratio at the end of 2009 was 54.8% compared with 54.9%  at the end of 2008, whilst the average LTV ratio on new residential lending in 2009 was 59% compared with 63% in 2008.

The percentage of mortgage cases more than three months in arrears increased to 2.3% at December 31 2009 compared to 1.8% as at December 31 2008.

Meanwhile, the stock of repossessed properties also reduced by 32% to 2,720 properties compared to 4,011 properties at the end of 2008 and, as a proportion of total accounts, remains lower than the industry average.

Based on the most recent published figures by the Council of Mortgage Lenders, the Group is performing marginally better than the industry average.