<strong>SANDY CHEN </strong> PANMURE GORDON<br />Although management expects impairment to abate in the second half of 2009, this is not usually what happens in the trough before a recession. We expect that book value of equity per share will continue to be eroded by further losses. We are comfortable with our full-year forecast of -35p earnings per share.<br /><br /><strong>RICHARD HUNTER </strong> HARGREAVES LANSDOWN<br />Lloyds remains largely reliant on the fortunes of the UK economy and, as such, is less diversified than most rivals. The upbeat management comments may have provided some respite for the shares today, but the outlook is challenging. The general market consensus remains stuck at a weak hold.<br /><strong><br />NIC CLARKE </strong> CHARLES STANLEY<br />On the face of it Lloyds Banking Group’s results were pretty terrible. We remain concerned that Lloyds might be being a bit too optimistic about its prospects. We are also confused about its rationale for coming to the conclusion that the peak in impairments has now passed.