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Pin to quick picksLloyds Share News (LLOY)

Share Price Information for Lloyds (LLOY)

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Share Price: 53.26
Bid: 53.24
Ask: 53.26
Change: 1.08 (2.07%)
Spread: 0.02 (0.038%)
Open: 52.98
High: 53.40
Low: 52.94
Prev. Close: 52.18
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Lloyds warns on Irish exposure

Fri, 17th Dec 2010 15:06

Continuing difficulties in the Irish economy will result in further loan impairments at Lloyds by the year end, the part-nationalised UK lender has admitted.It said that it anticipates that compared to the mid-year point, about another 10% of its £26.7bn Irish portfolio will become impaired by the year-end."Furthermore, the board believes that it is prudent to increase the level of provisions against the portfolio, and currently anticipates an increase in the impairment charge relating to Irish exposures for the full year 2010 to approximately £4.3bn on a combined businesses basis," it said. "This would result in an increase in provisions as a percentage of impaired Irish loans to approximately 54% at the 2010 year end."The Lloyds statement comes on the same day the ratings agency Moody's slashed its credit rating on Ireland by five notches to Baa1 from Aa2 amid worries over banking liabilities and economic prospects.Lloyds said in its statement that, "Market sentiment has continued to be negatively affected by uncertainty about the political situation and about the economic impact of the austerity measures introduced in the Irish Budget of 7 December."It added: "We are concerned that any economic recovery in the Republic of Ireland may take longer to achieve, and that asset prices will remain depressed for longer, than previously anticipated."
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