Lloyds in £6.3bn loss

PART-NATIONALISED Lloyds Banking Group has reported an operating loss of £6.3bn for 2009.

The lender is still saddled with bad debts but the loss is less than the record £6.7bn reported in 2008 after the bank’s rescue of stricken HBOS.

The bank is 41 per cent-owned by the state, down from 43 per cent after following the raising of £22.5bn of capital at the close of last year.

Total income rose by 12 per cent to £23.9bn, according to the annual results.

Meanwhile on a pre-tax profit basis, the group made a profit of £1bn.

Chief executive Eric Daniels, who has waived his £2.3 bonus for the year, said: “We have established positive trends in margin, cost and impairments and are well positioned. We are building strong earnings momentum and expect our performance to improve significantly in 2010 and beyond.”

The Royal Bank of Scotland (RBS), which is 84 per cent state-owned, has already reported a loss for 2009 of £3.6bn for last year.