Lloyds Banking Group expressed optimism for the coming year, despite its recent announcement of an operating loss of £6.3bn for 2009. Lloyds "believes that it will be profitable on a combined basis in 2010," the company said in an unscheduled trading statement, describing overall trading in the first ten weeks of 2010 as "good," with bad debts "trending at lower levels than anticipated." The company says it now expects to write off less than previously expected in both its retail and corporate businesses.
Lloyd has blamed bad loans made by Halifax Bank of Scotland (HBOS), which it took over at the start of 2009, for its performance last year although it added that its bad debts probably peaked in the first half of 2009. The bank, which is 41% state-owned, is currently implementing a restructuring plan following approval from the European Commission. Last year it cut 13,000 jobs.
Lloyds shares rose nearly 10% in morning trading, making them the top riser in the FTSE 100 share index.
