Insurance costs push Lloyds Banking into 2012 loss

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Associated Press

Posted on March 1, 2013 at 4:35 AM

Updated Friday, Mar 1 at 5:00 AM

LONDON (AP) — Lloyds Banking Group has raised the amount of money it has put aside to pay for the mis-selling of insurance products but still managed to more or less halve its loss in 2012.

The bank says Friday that it made a full-year loss of 1.34 billion pounds ($2 billlion), as against the 2.71 billion pounds deficit it recorded in 2011.

Despite further losses, the bank is optimistic about its outlook and pointed to an improvement in its underlying performance in 2012.

The bank, that is 39 percent owned by the British government, has suffered over the past couple of years by the costs of the insurance mis-selling to individuals and to businesses.

Despite the losses, the company says chief executive Antonio Horta-Osorio will receive a 1.48 million pound bonus.

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