Developing

Discover Yahoo! With Your Friends

Explore news, videos, and much more based on what your friends are reading and watching. Publish your own activity and retain full control.

To get started, first

YOUR FRIENDS' ACTIVITY

    Lloyds Expected To Reveal Massive 2011 Loss

    Sky News – Fri, Feb 24, 2012

    Lloyds Banking Group, which is part-owned by the taxpayer, is expected to announce losses of around £4bn for last year when it releases its results today.

    The losses, which compare to a £281m profit the previous year come after it was hit by £3.2bn outlay over the payment protection insurance scandal.

    Lloyds is currently 41% state-owned and at 36p, its share price is still nearly half the price tag of 63p a share paid by the Government for its huge stake.

    The release of results by Lloyds follows yesterday's revelations by 82% taxpayer-owned Royal Bank of Scotland of a £2bn loss.

    RBS chief executive Stephen Hester later provided a robust defence of his bank's controversial bonus pool of £800m .

    In contrast to RBS, Lloyds, which has no investment banking arm, has managed to duck the bonus row so far, after its chief executive Antonio Horta-Osorio waived his bonus following an extended absence due to ill health.

    However, there were calls earlier this week for the Portuguese boss to repay some of his signing-on award after the lender decided to strip 13 directors, including former chief executive Eric Daniels of about £2m in bonuses.

    But like RBS, Lloyds is going through a massive overhaul, which will include around 15,000 job cuts and the EU-enforced sale of 632 branches - dubbed Project Verde.

    The City will also be looking for an update on how much this restructuring will cost the bank, which owns more than 2,000 branches in the UK.

    Analysts are also watching bank progress on completing the sale of its branches to its preferred bidder, the Co-operative Bank.

     

    11 comments

    • hugh
      hugh  •  Beijing, China  •  3 months ago
      For a bank to lose money, I would think is extremely irresponsible. When I pay them my mortgage I pay them 3 or 4 times over, if I default they repossess my house, not bad business, but somehow they still manage to f.... it up and expect me from my hard earned taxes to bail them out.
    • tony
      tony  •  Coventry, England  •  3 months ago
      No doubt they will still put money in the greedy Fat Cats pockets though
    • Reg
      Reg  •  Stourbridge, England  •  3 months ago
      I still say that these Banks should have been totally nationalised rather than bailed out and the shareholders sent away with their tails between their legs along with the failed executives! The entire Banking Business needs to be re-invented.
      • alan
        alan 3 months ago
        Reg ..not all shareholders are big fat cigar smoking capitalist. Amongst the biggest shareholders are company pensions who provide pensions for millions of pensioners who are by no means rich. Would you like to see them sent away with their tails between their legs...
    • Dion.
      Dion.  •  3 months ago
      RBS announced £4.5 billion losses yesterday and Hester said it was good news it proved the bank was heading in the right direction,imagine an airline pilot announcing the plane was in a tail spin and heading for the ocean but dont worry it proves we are heading in the right direction.
    • WhistleTalker
      WhistleTalker  •  Middlesbrough, England  •  3 months ago
      SO IT's TAX PAYERS WHO PAY FOR THE PPI.

      Once this has been paid watch the PROOFITS ROLL IN and the BANKS to GET AWAY WITH PAYING PPI out

      SUCKERS=TAX PAYER
    • Alan
      Alan  •  Clitheroe, England  •  3 months ago
      Crazy world. Banks make money by lending money and that's what they are not doing. If they are not makiing money and paying executives obscene bonuses then i guess making a loss is only to be expected.
    • oboe
      oboe  •  3 months ago
      Great result! Now, about that unauthorised, £5.00 over my limit, letter. Go hang.
    • Richard Cowdell
      Richard Cowdell  •  3 months ago
      Given the underhand way that Lloyds sold PLP, the threats made to staff at the time if they did not sell it, the lack of proper (often non-existent) training, the way no-one in authority bothered to listen when disquiet was expressed at the policies, the way that anyone who did express disquiet was told they were being negative and sell or else, the unachievable targets that were forced on staff and thgreatrs if they didn't achieve them, it's not surprising that Lloyds are in such a mess. This is yet another example of yet another organisation being run by greedy people with absolutely idea how to run, in this case, a Bank and who couldn't care less what customers REALLY wanted (which was an efficient service they could trust). No doubt those who ran this once-great Bank and brought it into such disrepute during the Thatcher years, which was when it all went horribly wrong, are long retired and it is the present employees who will suffer the consequences of their actions and policies. Once you could trust your Bank, now Banking is one of the most corrupt and untrustworthy organisations in this most corrupt and untrustworthy country.
    • eavesdrop
      eavesdrop  •  3 months ago
      Just wait until news of the bonuses breaks. Telling us all that, appsrently, despite massive losses they all did their utmost and should be rewarded with a bonus.
    • The Vale Runner
      The Vale Runner  •  London, England  •  3 months ago
      The Lloyds group and RBS are going to show losses, because of the tax benefits available, they most certainly will not show a profit in the first year.
    • Hafizul
      Hafizul  •  3 months ago
      When you make a profit, you give a bonus to your staff, when you make a lose, the illogical thing to do is to slash all the top management salary.
     Post a comment