Lloyds bank reports £1.6 billion profit
Lloyds bank has today rebounded from a £4 billion loss in the first six months of last year to a £1.6 billion profit in the first 6 months of 2010, which is double what analysts were forecasting. One of the major factors in the startling turnaround in Lloyds bank was the reduction in bad debt charges down from £13.4 billion last year to "just" £6.5 billion this year. It was interesting to see that Eric Daniels, the company's chief executive, commented upon the level of business and liquidity suggesting that the bank was "open to any customer".
Lloyds bank has also claimed that credit today is cheaper than it has been for some time, a fact which seems fairly obvious bearing in mind UK base rates are 0.5%, as the UK banking industry attempts to repair the damage to his reputation. Interestingly it seems that consumers in the UK are more interested in repaying loans than taking on new loans, something which has impacted upon net advances by Lloyds bank. As with a number of UK banks, Lloyds bank claims that credit is available for consumers and the business arena although at the moment there is little in the way of demand.
What will the UK government make of these figures and will it prompt a review of the 41% holding in the group?
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