View more on these topics

Life and pension profits slump at Lloyds Bank

Lloyds Banking Group’s UK life, pensions and investments division saw a 25 per cent drop in profits last year to £617m from £826m in 2008.

The fall was revealed as Lloyds Banking Group posted a loss of £6.3bn for 2009.

The group’s loss was less than experts expected and slightly down on the previous year’s £6.7bn loss. Impairment losses increased by 61 per cent £9.1bn to £24bn for the year. with a 7 percent decrease in loans and advances to customers from £677bn in 2008 to £627bn in 2009.

The company says its life and pension profits were significantly affected by the general contraction in the market but the reduction also reflects the integration of the intermediary sales forces and the withdrawal of a number of legacy HBOS products with poor returns.

A loss of £3.3bn was reported for the wealth and international business, a new division created in 2009 which includes Scottish Widows Investment Partnership as well as the group’s offshore and private banking operations.

In its retail business, total income in mortgages and savings dropped 27 per cent to £3.6bn in 2009 from £5bn the previous year. Impairment losses on retail loans and advances have increased by 14 percent to £4.2 in 2009.

Payment protection insurance income dropped 4 percent to £349m last year. The firm says the decrease is a result of the market wide move to monthly premiums on payment protection.

Lloyds will launch its new bancassurance proposition in mid-2010 following the integration of the Scottish Widows and Clerical Medical salesforces last year.

Group chief executive Eric Daniels says: “Although we are forecasting a slow, below-trend, economic recovery, the group is successfully addressing the near-term challenges and is well positioned to deliver value for our customers and shareholders.

“As a result, the financial performance of the group’s continuing businesses is expected to improve significantly in 2010 and beyond.”

Earlier last week Daniels waived his £2.3m bonus for 2009.


Labour: Damaged private pension provision in the last 10 years

The flexibility factor

Wealthtime legal director David Baker talks about the increasingly flexible approach to wealth management and political party positions on pensions

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm