Lloyds set to return to profit after £6.3 million loss last year
Lloyds set to return to profit after £6.3 million loss last year
Friday 19th March 2010
Lloyds Banking Group has claimed it is set to return to profit this year due to a larger than expected drop in bad debts.The news for the bank, which is 41 per cent state-owned, has wrong footed forecasts which predicted another loss and has sent it shares sharply higher.
Lloyds sank £6.3 million into the red last year when it was hit by a steep jump in bad loans.
An unscheduled trading statement said Lloyds "believes that it will be profitable on a combined basis in 2010".
The bank said that the improved outlook reflected "good" overall trading in the first ten weeks of 2010. It added that bad debts trended at lower levels than anticipated and that costs were down compared to the previous year.
The news was reflected in the stock market where Lloyds shares became the top riser on the FTSE 100 rising up 9.6 per cent to 60.9 pence by 11.01 GMT on Friday March 19th.
Britain's biggest lender did though issue words of caution.
A spokesperson said: "In fact, our expectations of economic growth are lower than trend at 1.8 per cent and we are expecting house prices to remain flat. This is a wholly realistic look at what is driving profit."
Lloyds is currently forecast to make a 300 million pound loss this year, analysts said, citing the bank's own calculation of consensus expectations.
Analysts have also suggested that Lloyds' stronger performance makes it more likely the British government will try to sell part of its stake in the bank before an election expected to take place in May
Lloyds' £6.3 billion pound loss last year compares with a £6.7 billion pound loss the previous year.
Related News
Railway signal workers vote to strike over job cuts and safety - 19/03/10
Railway signal workers have voted in favour of strike action in a row over jobs, the Rail Maritime and Transport (RMT) union has announced today
Railway signal workers have voted in favour of strike action in a row over jobs, the Rail Maritime and Transport (RMT) union has announced today
FTSE 100 opens strongly following Lloyds trading update - 19/03/10
The FTSE 100 made steady progress on Friday morning, rising by 0
The FTSE 100 made steady progress on Friday morning, rising by 0
Banking sector leave FTSE 100 at close of play on Thursday - 18/03/10
The banking sector left the FTSE 100 flat on Thursday, on the day it was confirmed the government borrowed £12
The banking sector left the FTSE 100 flat on Thursday, on the day it was confirmed the government borrowed £12
Government borrowing in February 'less than predicted' - 18/03/10
The UK government borrowed another £12
The UK government borrowed another £12
Bannatyne slams fellow Dragon Caan over non-dom tax status - 18/03/10
Duncan Bannatyne has criticised his Dragon's Den colleague James Caan over his 'non-dom' tax status claiming it provides him with an "unfair" business advantage
Duncan Bannatyne has criticised his Dragon's Den colleague James Caan over his 'non-dom' tax status claiming it provides him with an "unfair" business advantage
News Article Search
Quick Apply
News Archive