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Lloyds debt provision up £2.4bn as profits plunge on grim outlook

Thu, 30th Jul 2020 07:00

(Sharecast News) - Lloyds Bank increased its provision for bad debts by £2.4bn in the second quarter as it braced for a "significant deterioration" in the economic outlook amid the coronavirus pandemic and swung to a heavy first-half loss.
That took impairment charges to £3.8bn in the first half, up from £579m in 2019, with the bank forecasting a full-year figure of between £4.5bn - £5.5bn.

The lender booked a pre-tax loss of £602m compared with a profit of £2.9bn a year ago. Net income fell 11% to £5.4bn.

"There have been early signs of recovery in the group's core markets, mainly in consumer spending and the housing market, but the outlook remains highly uncertain and the impact of lower rates and economic fragility will continue for at least the rest of the year," Lloyds said on Thursday.

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