P. M. BRIEFING : Lloyds Posts $1.2-Billion Loss
Lloyds Bank of Britain posted a pretax loss of $1.2 billion today after a huge provision against loans to developing countries undermined hefty profits made in 1988.
“The fact that our 1989 figures show a substantial loss arises from the large provision we have made for Third World debt,” Lloyds Chairman Sir Jeremy Morse said in a statement.
“As a result we are fully covered for that part of the debt which is doubtful, and the worst of this long-running problem should be behind us,” he added.
Lloyds Bank PLC became the third of the top four British commercial banks to see shrunken profits after making a provision of $2.9 billion to cover the debt of less developed countries, amounting to 70% of total exposure.
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