Lloyds posts H1 loss of four billion pounds

The entity, had a profit of 2.8 billion pounds in the same period a year ago, it said on Wednesday.

Battling the financial meltdown, impairment charges soared to 13.4 billion pounds, primarily due to the legacy loans of HBOS. The firm was acquired by Lloyds in January this year.

The charges have ballooned by 10.9 billion pounds as compared to the same period a year ago. “Around 80 per cent of the first half charge was associated with legacy HBOS’s loans, the majority of which are outside the traditional Lloyds low-risk appetite,” it said.

Noting that the economy is expected to stabilise in the second half of this year, Lloyds said that its results are anticipated to improve during the same period.