£7.6bn hangover at Lloyds after Irish losses rockethttp://www.independent.ie/business/euro ... 65596.html
By Laura Noonan
Saturday December 18 2010
LLOYDS Banking Group is nursing a £7.6bn (€9bn) hangover from its Bank of Scotland (Ireland) adventure after losses at the Irish division rocketed in recent months.
The massive losses at Lloyds emerged yesterday just hours after National Irish Bank (NIB) boss Andrew Healy told analysts there was "no guarantee" impairment charges would fall in 2011.
"The property market in Ireland remains in very poor shape," Mr Healy said on a conference call, adding that the austerity measures recently announced "will not help" the situation.
Lloyds's statement also honed in on the austerity measures, claiming they were "negatively affecting" market sentiment because of fears the cuts could blunt economic growth.
"We are concerned that any economic recovery in the Republic of Ireland may take longer to achieve, and that asset prices will remain depressed for longer than previously anticipated," Lloyds said.
That prediction prompted Lloyds to increase its Irish loan loss provisions from £1.557bn at the half-year point to £4.3bn.more