Lloyds warns of hard recovery

Lloyds warned of a long, hard economic recovery and set aside an extra £375 million (€458.22m) to compensate people mis-sold insurance, underscoring the challenge facing Britain’s banks as they battle to recover from financial crisis.

Lloyds, 40% owned by the government after a bailout during the 2008 crisis, said it was making progress in reducing its loan book, cutting costs and reining in bad debts — all key parts of its recovery plan.

But its planned sale of 632 branches is dragging on, highlighting the tough market facing sellers of British banking assets, and it struck a downbeat tone about the UK economy, which tipped back into recession last quarter.

“We think that the economy will be reasonably flat this year, but it is going to be a long and difficult recovery,” chief executive Antonio Horta-Osorio said.

Lloyds said it made a first-quarter statutory pretax profit of £288 million, down from £316 million in the previous quarter, but significantly better than a £3.5bn loss in the first quarter of 2011.

Bad debts fell 36% from a year ago to £1.7bn and the bank cut its non-core assets by £12.4bn in the quarter, shrinking its bad loans faster than expected.

Britain’s biggest retail bank in terms of customers reported a surge in compensation claims for Payment Protection Insurance (PPI) mis-selling in February and March.

Reuters


Lifestyle

Every parent eventually reaches that weird milestone where their children discover that their mother or father had a life before kids. For Cork musician John “Haggis” Hegarty it came this April, when his 17-year-old son walked in clutching a copy of the Irish Examiner.Emperor of Ice Cream: Cork band reunite for another scoop

Louis Theroux, best known for his TV documentaries, is, like the rest of us, being forced to improvise and so has started a podcast, Grounded with Louis Theroux.Podcast Corner: Louis Theroux and Ross Kemp zoom into action

Gavin James is preparing for what is probably the strangest challenge of his live-gigging career to date: performing to a sea of cars at his upcoming Live at the Drive In gigs.Gavin James: All revved up for drive-in gigs

The Government last week reminded anyone receiving the pandemic unemployment payment (PUP), put in place as an emergency response to layoffs made in the wake of the Covid-19 crisis, that they could be liable for a tax bill at the end of the year.Making Cents: Working out if you will face a tax bill because of Covid-19 supports

More From The Irish Examiner