Part state-owned British bank Lloyds pushed back key targets of its turnaround plan and warned a tough economic outlook would hit revenues this year after it plunged to a euro 4.12 billion ($5.5-billion U.S.) loss in 2011.
Lloyds, 40 per cent owned by the government after a state bailout during the 2008 financial crisis, said on Friday it no longer expected to meet goals to boost income and achieve a return on equity of over 12.5 per cent by 2014, although it added its “medium-term” recovery plan remained on track.
Banks across Europe have been posting billions of dollars in losses as the euro zone sovereign debt crisis has eroded the value of their government bond holdings and hit their bond trading businesses, and as they strive to meet tough new rules aimed at preventing a repeat of the 2007-9 banking crisis.
Rival Royal Bank of Scotland, 82-per-cent owed by the British government after a similar bailout in 2008, on Thursday reported a 2011 loss of about euro 2.35 billion ( US$ 3.16 billion).
For more: Lloyds turnaround stalls after huge loss - The Globe and Mail
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