Lloyds back to profitability after reduction in loan losses

LLOYDS Banking Group has said it will continue to monitor the Irish market even though a reduction in loan losses has helped it return to profitability.

Lloyds – in which the British government owns a 41% stake, as a result of Britain’s bank bailout – owns Bank of Scotland (Ireland). It said loan impairment charges (the amount put aside to cover bad/unpaid loans) in its Wealth and International division continue at a high level, “principally as a result of further provisions in Ireland relating to our commercial real estate portfolio”.

However, impairments relating to Lloyds’ Irish business were lower in the first three months of 2010 than they were in the final quarter of last year.