Lloyds declares itself “strongly positioned” despite £4bn loss

Lloyds Banking Group says it is “very strongly positioned” for long-term success despite posting a loss of £4bn in the first half of the year.

The banking group says mounting debts at HBOS, acquired by Lloyds in January, led to an impairment charge of £13.4bn, pushing the group in to the red from a £3bn profit in the same period last year.

Lloyds, now 43% owned by the taxpayer, has been cutting costs and jobs after taking on HBOS’s bad loans. Last month, it announced a further 1,200 job cuts, pushing the total cut to about 8,200 since the acquisition was completed in January.

It is also to close all of its Cheltenham & Gloucester branches article in November putting over 900 jobs at risk.

Despite the losses, the group’s chairman, Victor Blank, says he has “a great belief in the exciting prospects for the Group going forward”.

“We are very strongly positioned for long-term success with a highly experienced management team focused on delivering the significant potential of the new business,” he says.

Stephen Timms, chief secretary to the Treasury, who is understood to be taking on the role of Minister for Communications, told the BBC that Lloyds is “starting to do the things we need banks to be doing” in terms of mortgage lending and granting start-up business accounts.

Lloyds has restructured its marketing department following the HBOS acquisition including bringing in former Visa marketer Joe Clift as head of brand/customer marketing to work under group marketing director Nigel Gilbert.

The banking is also reviewing its media account with Zenith and MEC on the shortlist.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here