LONDON – Britain's Lloyds Banking Group (LBG) today posted a near 65% slump in 2020 net profit on “significant” economic fallout from the coronavirus pandemic.
Profit after tax nosedived to £865 million (RM4.85 billion) last year, from £2.46 billion in 2019, LBG said in a results statement.
The bank also took a £4.2 billion impairment charge which reflected a “significant deterioration in the economic outlook” as a result of the Covid-19 health emergency.
Revenues tanked by almost a third to £29.2 billion.
“The group’s financial performance in the year has been impacted by the pandemic,” said outgoing chief executive officer Antonio Horta-Osorio.
He added: “The impact of the coronavirus pandemic on the people, businesses and communities in the UK and around the world in 2020 has been profound.
“We remain absolutely focused on working together with all of our stakeholders to support our customers and ensure a sustainable recovery.”
The group revealed separately that Briton Charlie Nunn will replace Portuguese national Horta-Osorio as chief executive officer on August 16, subject to regulatory approval.
Nunn’s appointment had already been announced in November.
The bank meanwhile gave a guarded outlook regarding the worldwide vaccines rollout.
“Looking forward, significant uncertainties remain, specifically relating to the coronavirus pandemic and the speed and efficacy of the vaccination programme in the UK and around the world,” Horta-Osario said.
“I remain confident that the group's clear purpose, unique business model, significant competitive advantages and the customer focused evolution of our strategy we have announced will ensure that the group is able to help Britain recover and in so doing, help transition to a sustainable economy.” – AFP, February 24, 2021
