Lloyds delays targets, reports pre-tax loss of 3.5bn pounds

Lloyds Banking Group said it expects the external environment to remain challenging this year and has had to delay its return on equity and income-related targets beyond 2014. Meanwhile, the lender reported a steep loss for 2011, dragged down by substantial charges in relation to Payment Protect Insurance (PPI).

Lloyds Banking Group said it expects the external environment to remain challenging this year and has had to delay its return on equity and income-related targets beyond 2014. Meanwhile, the lender reported a steep loss for 2011, dragged down by substantial charges in relation to Payment Protect Insurance (PPI).

The statutory pre-tax loss came in at £3,542m, compared with a profit of £281m last year, and includes a £3.2bn non-recurring provision for PPI contact and redress costs. However, pre-tax profit for the combined businesses - which Lloyds believes reflects more "meaningful and relevant comparatives" - jumped 21% to £2,685m, while pre-tax profit for the the core combined businesses rose 3% to £6,349m.

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