Lloyds posts heavy losses of £6.3bn
Updated on 26 February 2010
Taxpayer-backed Lloyds Banking Group has revealed massive pre-tax losses of £6.3bn for 2009 after taking a £24bn hit on bad debts.
The Lloyds group, which is 41 per cent state-owned, posted the figures exactly 24 hours after RBS revealed it too had lost billions of pounds in 2009.
It is Britain's largest retail bank, but the group is struggling with the £24bn pounds on toxic loans, acquired mostly from old HBOS assets.
But the bank insists bad debt losses will steadily recover in 2010, with the economy showing "a weak upturn" which will lead to a significant improvement in its businesses.
The comments echoed similar cautious optimism from Royal Bank of Scotland. RBS bosses have predicted a recovery and improved margins ahead for its retail banking operations.
Lloyds chief executive Eric Daniels has already announced he will give up a £2.3 million bonus.
The bank's boss had been entitled to a maximum 225 per cent of his £1.04m salary due to his "significant individual contribution".
However, he waived a "reward" for the second year in a row to stave off another row over bank pay.