Lloyds Banking Group has reported a rare pretax loss in the first half of 2020, after setting aside a bigger than expected £2.4 billion second quarter provision to cover a potential hike in bad loans due to the coronavirus.
The quarterly provision for loan losses compared to a £1.5 billion forecast, according to an average of analyst estimates compiled by Britain's biggest domestic bank.
The fresh charge pushed Lloyds' provisions for the first half to £3.8 billion.
Lloyds is searching for a new CEO to help steer it through the economic fallout from the pandemic, after António Horta-Osório said earlier this month he would step down by next year after a decade leading the bank.
The first half loss compared with pretax profits of £2.9 billion last year. The bank posted a statutory post-tax profit of £19m, largely due to tax credits earned on some of its most valuable assets.
Lloyds' net interest margin - a key measure of lending profitability - sank by 20 basis points to 2.59% in the three months to the end of June, as interest rates hover just above zero and demand for loans and mortgages wilts.
