Lloyds reports first annual profit since bailout

| February 25, 2011 | 0 Comments

Banking giant Lloyds has today reported it has returned to profit - its first since the bank had to be rescued by the Government at the height of the financial crisis in autumn 2008.

Lloyds Banking Group, which is 41% owned by the taxpayer, posted pre-tax profits of £2.2 billion, compared with a £6.3 billion loss in 2009.

The results beat expectations and come just a day after the Royal Bank of Scotland (RBS), which is 84% owned by the taxpayer, reported a net attributable loss of £1.13 billion for the 2010 year.

While RBS’ loss was down from the £3.6 billion reported for 2009, it was higher than analysts had expected.

Last week, Barclays reported profits of £6.1 billion for the 2010 year.

Returning to Lloyds, bad debt losses fell to £13 billion in 2010, from £23 billion in the 2009 year.

Outgoing chief executive Eric Daniels comments: “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.”

In related news, yesterday Lloyds revealed a rise in customer complaints in the second half of 2010.

The bank, which runs the Halifax and Bank of Scotland, received 329,761 complaints in the six month period – a 14% rise compared with the same period a year earlier.

According to the bank, the rise in complaints was attributed to the sale of payment protection insurance policies – which the bank ceased selling in July 2010.

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