Lloyds’ Irish loans losses increase

LLOYDS Banking Group has reported a swing back into profit for the first half of this year, but also saw losses on loans in its Irish division grow significantly during the period.

The group — which is 41%-owned by the British government, but also controls the Bank of Scotland business — yesterday reported a pre-tax profit of just over £1.6 billion (€1.93bn) for the first half of 2010; a considerable improvement on the £3.96bn (€4.45bn) pre-tax loss it recorded for the same period last year.

However, while management is talking up an improved capital position — Lloyds’ core tier one capital improved to 9% over the first half — and a “more productive balance sheet” going forward, things don’t look as positive for its operations here.