Lloyds provides upbeat statement
Lloyds Banking Group, which is 41% owned by the taxpayer, has today provided an upbeat statement as it continues its recovery from the global financial crisis.
The bank, which had to be bailed out in autumn 2008, said it remains on track to deliver a “good financial performance” for 2010 as it continues with its cost-cutting exercise following its takeover of HBOS.
It has been busy disposing of assets under the orders of the European Commission, as a punishment of the billions of pounds in state aid that it received by the Government at the height of the financial crisis.
Meanwhile, the bank returned to profit during the first half of 2010 as bad debts fall and it stepped up its repayment of its emergency funds, provided by the Bank of England.
It added that lending for the 2010 year totalled £35 billion but said demand for mortgages remained weak.
Outgoing chief executive, Eric Daniels, said: “I am pleased to report that we had a good third quarter in our core business as we continue to deliver against the group guidance that we provided at the interims.”
Fifty-nine year-old Daniels is the longest serving CEO at a major British bank and will continue in his post until next year when a replacement is found.
In related news, shareholders have been protesting about the HBOS takeover. An investor group called Lloyds Action Now, which was established over a year ago, claimed investors were lured into voting for the takeover, while not being provided with all the relevant information – particularly in respect to HBOS’ finances.
The group of shareholders claim they were misled into voting for the takeover without being informed that loans to HBOS from the Bank of England totalled approximately £25.4 billion.
While the loans have now been repaid, they were not disclosed in the takeover documents.
Shareholders have held many protest meetings throughout the country to demonstrate their anger and the group is in the process of suing Lloyds directors and the Government.