Lloyds: Further Deterioration in the Economic Outlook and NIM Compression Lead to Q2 2020 Loss
The intensification of revenue pressures and the significant increase in provisioning led Lloyds Banking Group plc (Lloyds or the Group) to a statutory loss before tax of GBP 676 million in Q2 2020. This compares with the profit of GBP 74 million in Q1 2020 and GBP 1.3 billion profit in the same quarter of 2019. On an underlying basis (excluding restructuring, volatility and other items, and payment protection insurance charges) the pre-tax loss was GBP 839 million compared to underlying profits of GBP 558 million in Q1 2020 and GBP 2 billion in Q2 2019.
Lloyds Banking Group is a financial services provider. Co.'s main business activities are retail and commercial banking, general insurance and long-term savings. Co.'s Lending products are mortgages, credit cards, personal and business loans; Deposit products include taking Current accounts and savings accounts; Insurance products are home insurance, motor insurance and protection; Commercial financing products includes term lending, debt capital markets and private equity; and Risk management products includes interest rate hedging, currency and liquidity. As of Dec 31 2017, Co. had total assets of £812.1 million and total deposits of £448.0 million.
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