View more on these topics

Lloyds reports £2.2bn profit but reduces mortgage market share

Lloyds Banking Group has today revealed pre-tax profits of £2.2bn for 2010, compared to a loss of £6.3bn in 2009, but the lender has seen its share of the mortgage market shrink 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 to £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 ten first-time buyer applications in 2010.

The proportion of mortgages on standard variable rates now represents 48% of outstanding balances.

The proportion of mortgages with an LTV of greater than 100% was broadly stable at 13%, but the value of the portfolio with an LTV greater than 100% and more than three months in arrears has increased slightly by £0.2bn and is now £3.2bn, representing 0.9% of the portfolio.

Lloyds says the number of mortgage customers new to arrears has also remained relatively stable in the last twelve months, and is now well below the peak experienced in the second half of 2008.

However, as a result of the early signs of strain it saw in the second half of the year and the subdued economic environment, it expects to see an increase in the secured impairment charge in 2011.

While mortgage balances declined by £3.8bn, it says retail continued to support first-time buyers and home movers with gross mortgage lending of £30bn.

The average LTV on new mortgage lending in the year was 60.9%, compared to 59.3% for 2009, while the average indexed LTV on the mortgage portfolio was 55.6%.

Eric Daniels, group chief executive of Lloyds, says: “2010 was an important year for Lloyds Banking Group, marking our return to profitability, and a further reduction in risk in our business. Our significant progress in the year has positioned the Group well to become the best bank in the UK for all our stakeholders, including our customers, shareholders and employees.”

Recommended

GRAHAM HARVEY, MANAGING DIRECTOR INDIVIDUAL, FRIENDS PROVIDENT

Sniff out the best critical illness cover

I thought I’d heard it all when Paul the psychic German octopus was predicting the World Cup football results. But when I saw the headline, ’Early bowel cancer detected by dogs in Japan’, it certainly got my attention. Tumours are thought to have a distinct smell and during a study in Japan a labrador sniffed […]

Growing B2L sector gives brokers chance to boost their income

The publication of LSL’s buy-to-let index for February highlights a couple of emerging opportunities for brokers in the sector. First, the report confirms that investors are continuing to pile into the buy-to-let market, encouraged by the opportunity to generate decent rental returns and facilitated by a greater choice of mortgage products. In Q4 2010 the […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • john 25th February 2011 at 9:23 am

    Congratulations Lloyds.

    ‘Champions keep playing until they get it right’

  • john 25th February 2011 at 9:23 am

    Congratulations Lloyds.

    ‘Champions keep playing until they get it right’