Lloyds Banking Group reveals £6.3 billion loss for 2009
Lloyds Banking Group reveals £6.3 billion loss for 2009
Friday 26th February 2010
Lloyds Banking Group, which is 41.3 per cent owned by the British tax payer, has revealed it made a £6.3 billion loss last year.The loss comes after the bank was forced to write down the value of bad investments made by HBOS, which it rescued in 2009.
Despite the negative figures it is still expected the bank will pay out around £200 in bonuses to its staff.
The amount is considerably less though than the £1.7 billion earmarked for bonuses by the Royal Bank of Scotland (RBS), which was also bailed out by the tax payer. The disparity in figures is largely due to Lloyds not having an investment banking division.
The Lloyds bonus pool is in fact a very small percentage of its £24.6 billion total revenue for the 2009.
The banking group's chief executive Eric Daniels followed the lead of bosses at RBS and Barclays and has waived his annual bonus for the second year in a row.
The bank blamed its £24 billion loan losses on deals done by HBOS, which invested heavily in property and took equity in numerous property companies whose portfolios suffered dramatic declines in value in the last year.
The bank though claimed they expected the bad debts, or impairment charges, to be lower in the coming year and that they had peaked in the early part of 2009. Bad debts fell by 21 per cent in the second six months of last year.
Lloyds said in a statement said: "Given our current economic outlook, we expect to see a similar pace of half-yearly improvement throughout 2010, with further substantial reductions in 2011 and beyond."
Shares in the bank fell in early trading, down 1.95 per cent to 53.7p.
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