LLoyds has set aside a further £2.4 billion in its second quarter to cover the cost of loans it thinks could turn bad as a result of the coronavirus crisis.
The impairment charge is £1 billion more than analysts had expected and pushed the bank to a loss of £602 million for the first half of the financial year. The first half loss compared with pretax profits of £2.9 billion last year.
The fresh charge pushed Lloyds’ provisions for the first half to £3.8 billion.
Lloyds is searching for a new chief executive to help steer it through the economic fallout from the pandemic, after António Horta-Osório said earlier this month he would step down by next year after a decade leading the bank.
Antonio Horta-Osorio said: “The impact of the coronavirus pandemic in the first half of 2020 has been profound on the way we live our lives and on the global economy. We remain fully focused on helping our customers and the UK economy recover, in collaboration with Government and our regulators.
“I want to express my sincere gratitude to all my colleagues across the group for their dedication and persistence which have allowed us to deliver vital banking services to our customers effectively throughout the pandemic.
“Although the outlook is uncertain, the group’s financial strength and business model allow us to help Britain recover and play our part in returning our country to prosperity. Our customer-focused strategic plan remains fully aligned with the group’s long-term strategic objectives, the position of our franchise and the interests of shareholders.”
