The fortunes of Britain’s biggest banks have undergone a startling turnround, with profit growth at the state-backed Lloyds Banking Group set to eclipse that of Barclays when it reveals its first-half results next week.
The resurgence of Lloyds, which is expected to post a profit of about £1bn for the first half, will bolster the position of Eric Daniels, the bank’s chief executive.
The return to profitability starkly contrasts with almost £4bn of losses in the same period last year. It has been driven by a forecast drop of more than 50% in bad debts.
Financial Times 31/07/10 page 1
