Lloyds reports £2.2bn profit

Lloyds Banking Group has announced its first annual profits since being bailed out by the Government during the financial crisis.

The company, which is 41 per cent owned by the taxpayer, reported pre-tax profits of £2.2bn, compared with a £6.3bn loss in 2009.

The bank's bad debt losses were down in 2010 to £13bn, from £23bn the previous year.

In Ireland bad loans rocketed to £4.3bn from £2.9bn in 2009.

Lloyds also said loans to customers fell two per cent to £363.7bn.

The company has already revealed its bonus plans, with outgoing chief executive Eric Daniels being awarded £1.45m for 2010.