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Lloyds Posts Loss on Loan Insurance, Swaps Compensation

Lloyds Banking Group Plc, Britain’s biggest mortgage lender, posted its third straight full-year net loss and indicated profit margins will be narrower than analyst estimates amid a faltering economic recovery.

The loss narrowed to 1.43 billion pounds ($2.2 billion) from 2.8 billion pounds in the year-earlier period, the London-based lender said in a statement today. Lloyds forecast a net interest margin, the difference between earnings on loans and the cost of funding, of 1.98 percent for 2013, less than the 2 percent estimate of Ian Gordon, an analyst at Investec Plc in London.