Lloyds lightens 2020 ECL forecast, but projects a gloomier 2021

Lloyds used a rosier macroeconomic forecast for 2020 to set its Q3 loan-loss provisions, but is now predicting a tougher 2021 than it did the quarter prior.

The UK lender said it expects total loan-losses for the year to come in at the lower end of the £4.5 billion–5.5 billion ($5.8 billion–7.1 billion) range it provided at end-June. Over the nine months to end-September, loan-loss reserves amounted to £4.1 billion. However, just £301 million were incurred in Q3.

The bank’s expected credit

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