Lloyds 'set for profitable 2010'

19 March 2010

Lloyds Banking Group has forecast that it is to have a profitable 2010 following a positive start to the year.

Last month, the British bank posted a £6.3 billion ($9.6 billion) loss in its results for 2009, only a minor improvement on the £6.7 billion deficit of 2008.

When announcing the company's annual results, chief executive officer Eric Daniels said he expected a "slow, below trend, economic recovery", while also stating that Lloyds is successfully addressing its short-term challenges.

But the firm, which is 41 per cent owned by the British government, has now published a more bullish statement predicting a return to profit this year.

"[The bank] will be profitable on a combined businesses basis in 2010," the company said. "The group now expects to deliver a better impairment performance … in both the retail and corporate businesses".

Shares in Lloyds have gone up eight per cent in reaction to the publication of the statement, reports Bloomberg.

By Asim Shah

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