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Lloyds ramps up impairments

The lender swung to a pre-tax loss during the first half as it incurred a further £3.8bn in 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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