Lloyds ‘monitoring’ its Irish exposure

LLOYDS Bank has said it is “closely managing” its exposure to Ireland, after seeing its Irish-based loan losses increase by 14% year-on-year during the first half of this year.

Lloyds acquired Halifax/Bank of Scotland in 2009 and is currently in the process of winding down that company’s Irish loan book, following Bank of Scotland’s decision to formally exit Ireland.

While total group-wide impairment charges to cover bad loans fell by 17%, to £5.4bn in the first half of 2011, Lloyds said the improvement would have been even better if not for a further deterioration in Ireland. Here, Lloyds’ first half impairment charge went from under £1.6bn to £1.8bn.