Reduction in bad debt helps Lloyds return to profit
Lloyds Banking Group, which is 41% owned by the taxpayer, today said it has returned to profit during the first quarter of 2010, as a result of a reduction in bad debt.
The banking giant also said it expects to continue to be profitable for the remainder of the year.
The announcement comes just a month after chief executive, Eric Daniels, pledged that the bank would return to profitability in 2010
A the time, Mr Daniels said: “Overall, based on the group’s current economic and regulatory assumptions which remain unchanged since our recent 2009 preliminary results announcement, the group believes that it will be profitable on a combined businesses basis in 2010.”
However, the bank cautions that it is closely monitoring the current economic climate, particularly within the Irish economy, which has significant debts and a deep recession.
In the meantime, the bank said the number of current accounts and savings had risen but lending was flat.