Half Year Results 

Lloyds ramps up impairments

Lloyds ramps up impairments

Without the investment banking operations of the likes of Barclays (BARC) and Standard Chartered (STAN), Lloyds (LLOY) felt the full impact of a darker outlook for consumer loans. Credit impairments totalled £3.8bn over the first half, including £2.4bn during the second quarter, which pushed the lender into a pre-tax loss. Management expects to take a hit on bad debts of between £4.5bn and £5.5bn in 2020 and has also guided towards a net interest margin of 2.5 per cent as the base rate reduction will continue to blunt profitability.

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