News article

Bad debts blamed for £4bn Lloyds loss

Bad debts blamed for £4bn Lloyds loss
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Lloyds Banking Group made a loss of £4 billion during the first half of 2009, with a rise in bad debts cited as a reason behind the decline in profit.

The bank said that these were taken on with its purchase of HBOS earlier in the year, something that may interest those trading on the stock market.

During the same period in 2008, Lloyds made a profit of £2.8 billion, but its loss was not as bad as the £5.1 billion that had been predicted by six analysts that took part in a Reuters poll.

Impairment losses - which rose to £13.4 billion - are likely to have peaked in the first half, the financial institution said, with chairman Sir Victor Blank expressing confidence in the Lloyds' prospects for the second half of the year.

"We are very strongly positioned for long-term success," he stated, adding that he is "a great belief" in the future prospects of the group.

The news boosted Lloyds' share price, which was up 7.87 per cent to 90.90p at 10:07 BST.ADNFCR-1681-ID-19297650-ADNFCR