Lloyds Banking Group slumps to £2.78 bn loss

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Britain's state-rescued Lloyds Banking Group on Tuesday reported a net loss of £2.78 billion (3.25 billion euros, $4.46 billion) in the first nine months on exceptional charges and a drop in income.

LBG said its loss after tax for the nine months to September 30 compared with a net profit of £1.6 billion in the first three quarters of 2010.

The bank, which last week announced that its chief executive Antonio Horta-Osorio had temporarily stepped down due to illness, has been hit by one-off charges of £3.2 billion to compensate customers mis-sold insurance.

LBG said on Tuesday that its loss before tax stood at £3.86 billion in the first nine months of 2011, which included the exceptional charge.

It added that the bank's income fell by 9.0 percent to £16.1 billion in the reporting period. But LBG also announced a 22-percent drop in total impairment charges to £7.37 billion in the first nine months.

Lloyds Banking Group, 41-percent owned by the British government, axed 15,000 jobs earlier this year in a bid to save £1.5 billion annually.

© 2011 AFP

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