LONDON ( TheStreet) -- Lloyds ( LYG), the U.K.'s biggest mortgage company, had a pretax operating loss in 2009 of 6.3 billion pounds ($9.61 billion) as impairments rose 61% to 24 billion pounds. Lloyds, however, said impairments declined 21% in the second half of the year from the first half, and it expects to see "a similar pace of half yearly improvement throughout 2010." Lloyds reported a 2008 pretax loss of 6.7 billion pounds. Lloyds is 41%-owned by the U.K. government. On Thursday, Royal Bank of Scotland ( RBS), which is 84%-owned by the U.K., narrowed its 2009 loss to 3.6 billion pounds. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.