Lloyds Swings to Loss, Margins Pressured
LONDON (TheStreet) -- Lloyds Banking Group (LYG) swung to a loss in 2010 on impairment charges and said margins would be pressured this year.
The bank posted a loss of 320 million pounds ($514.2 million) in 2010, a reversal from a profit of 2.83 billion pounds in 2009. Money set aside for bad loans fell 45% overall to 13.2 billion pounds but impairment charges in Ireland rose 49% to 4.3 billion pounds.
The bank, which is 41%-owned by the U.K. government, reported a higher-than expected pretax profit in 2010 of 2.2 billion pounds.
Lloyds, the U.K.'s top mortgage lender, said its net interest margin for 2011 would be unchanged.
CEO Eric Daniels, who will be stepping down this week, said the rate of improvement in loan impairments that helped drive 2010 pretax profit wouldn't be as dramatic in 2011 amid slower British economic growth. That means that 2011 and 2012 profit estimates might need to be revised, analysts said, The Associated Press reports. -- Written by Joseph Woelfel>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: tips@thestreet.com.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
