The Lloyds bank suffered losses in the second quarter. The Financial Group was left with money before a provision of GBP 2.4 billion went into the books of bad loans.
Lloyds, the UK’s largest mortgage lender, now expects to have to accumulate between GBP 4.5 billion and GBP 5.5 billion this year to cope with the economic consequences of the quarantine and the end of state aid.
“The prospects have clearly become more challenging since we released our results for the first quarter,” said CEO Antonio Horta-Osorio.
According to him, the economic consequences of the British quarantine are greater than could have been foreseen at the time.
As a result of the substantial provision, Lloyds’ gross surplus amounted to GBP 676 million. Earlier this year, the Financial Group, like other European banks, stopped paying dividends. At the end of this year, Lloyds will see if the payments can be resumed.