Dark Covid outlook pumps up Lloyds’ loan-loss reserves
Base case for 2020 now projects UK GDP to drop 10%
UK lender Lloyds took a £2.4 billion ($3.1 billion) charge for expected credit losses (ECL) on souring loans in Q2, pushing its overall stock of loan-loss reserves to £7.2 billion, close to double its amount at end-2019.
The firm said an update to the macroeconomic scenarios it uses to gauge future impairments drove the ECL build. This contributed £1.8 billion to provisions in Q2, and £2.6
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