By Sabela Ojea

 

Lloyds Banking Group PLC reported Thursday an unexpected swing to a pretax loss for the first half of 2020 after booking a large impairment charge due to the coronavirus pandemic and said that its outlook remains highly uncertain.

The U.K.'s largest retail bank posted a pretax loss of 602 million pounds ($782.4 million) compared with a profit of GBP2.90 billion for the same period a year earlier. The lender was expected to report a pretax profit of GBP42 million for the first six months of the year, according to its own compilation of consensus.

The FTSE-100 lender's net income decreased 38% to GBP5.48 billion. The bank was expected to post a net income of GBP7.4 billion for the period, according to its own compilation of forecasts.

The bank took impairments of GBP2.39 billion in the second quarter after booking a GBP1.43 billion charge in the first quarter of the year due to the coronavirus pandemic, a total of 3.82 billion, up from the expected GBP2.9 billion impairments for the first-half based on Lloyds' compilation of estimates.

The bank ended the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 14.6%, up from 13.6% at the year-earlier period.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

July 30, 2020 02:38 ET (06:38 GMT)

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