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Lloyds profits slump, ING stalls float

Thursday, August 04, 2011 - 01:54

Aug. 4 - Compensating customers who were mis-sold insurance has pushed Lloyds 3.25 billion pounds into the red in the first half and Dutch bank ING says will not be launching a stock market flotation for its insurance operations any time soon. Hayley Platt reports

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The cost of repaying customers mis-sold payment protection insurance and bad debt in Ireland and Australia has pushed Lloyds bank into a loss for the second quarter. Britain's biggest retail bank reported pre-tax losses of £3.3. billion pounds - compared to a profit of £1.3 billion pounds this time last year. The results pushed shares down more than 4 percent in early trading. Lloyds became one of four British banks to be nationalised during the credit crisis two and a half years ago. Since then it's struggled to operate independently of taxpayers money. In June it announced job cuts of 15,000 over the next three years and the closure of some of its overseas branches. Earlier this week HSBC and Barclays announced job cuts and RBS is next to report earnings. According to the UK's Financial Times it plans to axe up to 2000 jobs from its investment banking arm. There was better news from Dutch banking and insurance group ING. It reported a one and a half billion euro profit for the second quarter - a rise of almost 25 percent. This was despite a loss of over 3 million euros on its Greek debt holdings. The bank said its insurance business had performed well delivering strong profits. The group is planning to float the 19 billion euro side of the business to repay a state bailout. But the company's CFO says it won't happen anytime soon. SOUNDBITE: Patrick Flynn, chief executive, saying (English): "In respect of IPO's in Asia and America's business today's not the day you're going to do it. These markets are not conducive to date for an IPO." ING has until the end of 2013 to launch its stock market flotation, when it hopes the market will be in better shape. Hayley Platt, Reuters

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Lloyds profits slump, ING stalls float

Thursday, August 04, 2011 - 01:54