read the news // live the culture
The Upcoming | Read the news // Live the culture
Friday 24th October 2014

Insurance scandal causes Lloyds a loss of £3.5bn

  Friday 24th February 2012
  Friday 24th February 2012

Lloyds bank today revealed a loss of £3.5bn for the year 2011, following the use of £3.2bn to cover payment protection insurance claims.

The result was worse than expected and the company is among the biggest fallers in the FTSE 100, down 2.4%. The taxpayer, which owns 41% of the share, was left with a loss of £10bn.

Lloyds Banking Group announces a loss of £3.5 bn.

Lloyds Banking Group announces a loss of £3.5 bn.

Chief executive Antonio Horta-Osorio, who took two months sick leave on the latter part of 2011, was relatively optimistic as he believed the results weren’t ‘profit warning’. However, he reiterated that the income would be lower in 2011.

He said: ‘Given the economic outlook, in 2012, on a combined business basis, we expect income to be lower than in 2011, given further non-core asset reductions, subdued demand in the core loan book, higher wholesale funding costs, and interest rates likely to remain at low levels for longer.’

If PPI charges were to be ignored, then Lloyds had a profit of £2.7bn in 2011, up 21% in the previous year.

Total income, net of insurance claims saw a drop from £24.96bn to £20.77bn , reflecting subdued lending demand, disposals of non-core assets and a lower lending margin.

The impairment losses from bad loans also saw a reduction to £9.79bn, a trend which is expected to continue in 2012.

Mr Horta-Osorio commented on the figures stating: ‘the quality of new business is better’.

Rajeeb Gurung

More about the author

Share this story

  • Pin It
  • Share on Google+
  • Reddit
  • Stumble
  • LinkedIn

Latest related

Memphis at the Shaftesbury | Theatre review
Memphis at the Shaftesbury

David Bryan and Joe DiPietro’s Memphis opens in the West End this week after sweeping Broadway with its 1950s charm [read more]

One Republic at the O2 Arena | Live review
One Republic at the O2 Arena

One Republic are currently on a European tour entitled Native, to promote their third album; Wednesday saw them take [read more]

Little Noise Sessions: Jake Bugg at Union Chapel | Live review
Little Noise Sessions: Jake Bugg at Union Chapel

Little Noise Sessions, curated by Jo Whiley, are held in Union Chapel in Islington every year in aid of Mencap. The [read more]

Death From Above 1979 at Electric Ballroom | Live review
Death From Above 1979 at Electric Ballroom

There seems to be a flurry of top quality two-piece bands at the moment: Royal Blood, The Black Keys, The Kills. But no [read more]

London Film Festival 2014: Mommy | Review
London Film Festival 2014: Mommy

Thursday 16th October, 6pm – Odeon West EndSunday 19th October, 8.30pm – BFI Southbank Five years ago, [read more]