Lloyds reports £3.5bn loss for 2011

Lloyds TSB signPart-nationalised Lloyds Banking Group said that it is "in a significantly stronger position than it was 12 months ago" despite unveiling total losses of £3.5 billion for last year.

The losses, which compare with a £281 million profit the previous year and are driven by a £3.2 billion hit to tackle the payment protection insurance (PPI) scandal, are nearly twice the size of those at fellow state-backed bank Royal Bank of Scotland.
However, stripping out the PPI charge and other one-off costs, the 40% state-owned bank made a £2.7 billion profit in 2011, up 21% on the same measure in the previous year.

Lloyds said its total bonus pool for last year was £375 million, down 30% against 2010, with an average bonus of £3,900 for each of its 100,000 staff.

In contrast to RBS, Lloyds, which has no investment banking arm, has managed to duck the bonus row so far after its chief executive, Antonio Horta-Osorio, waived his bonus following an extended absence due to ill health.
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