Share Dealing News Lloyds Shares Drop As It Posts Pound63billion Loss

Lloyds shares drop as it posts £6.3billion loss

26 February 2010 / by Rebecca Sargent

Shares in Lloyds Banking Group fell in value this morning by more than three per cent as the troubled bank posted losses of £6.3billion.

The operating loss for 2009 was slightly better than the £6.7billion seen in 2008, but only slightly less than the loss that experts were predicting.

Unlike Royal Bank of Scotland, which posted better than expected losses, which caused its share price to rally, Lloyds shares have fallen once again.

During 2009, the banking group lost £24billion on bad loans, the majority of which came from HBOS, which Lloyds acquired at the end of 2008.

Commenting, group chief executive Eric Daniels said: “2009 was a year of significant achievement in shaping the Group. We have established positive trends in margin, costs and impairments and are well positioned.

“We are building strong earnings momentum and expect our performance to improve significantly in 2010 and beyond,” he adds.

Mr Daniels has declined his bonus of £2.3million, for the second year in a row, following the example of RBS’s Stephen Hester who declined his £1.6million bonus earlier in the week.

© Fair Investment Company Ltd

Written by Editorial Team