Lloyds Banking Group made a loss of £676m ($878m) for Q2 2020 and a loss of £602m for H1 2020.
Looking at profit after tax for H1 2020, it totalled £19m, a startling 99% drop year-on-year.
Net income for the half-year was £7.4bn, down 16% from 2019.
However, total costs were £3.9bn, 4% lower than the previous year, but impairment charges reaches £3.8bn. this includes £2.4bn in Q2 2020 for Lloyds, reflecting a “significant deterioration in forward looking economic outlook”.
António Horta-Osório, group chief executive, said: ““The impact of the coronavirus pandemic in the first half of 2020 has been profound on the way we live our lives and on the global economy. We remain fully focused on helping our customers and the UK economy recover, in collaboration with government and our regulators.
“I want to express my sincere gratitude to all my colleagues across the Group for their dedication and persistence which have allowed us to deliver vital banking services to our customers effectively throughout the pandemic.
“Although the outlook is uncertain, the Group’s financial strength and business model allow us to help Britain recover and play our part in returning our country to prosperity. Our customer focused strategic plan remains fully aligned with the Group’s long term strategic objectives, the position of our franchise and the interests of shareholders.”
Q2 2020 for Lloyds insurance and wealth
The Insurance and Wealth arm of Lloyds currently supports over 10 million customers with assets under administration of £160bn.
Wealth income fell from £181m in H1 2019 to £108m in H1 2020. The reduction on Wealth income was attributed to the transfer of business to Schroders Personal Wealth in 2019. However, stockbroking more than doubled. Lloyds still intends to continue the transition to Schriders and remains committed to being a top three financial planning business by the end of 2023.
Underlying profit for the division totalled £379m for H1 2020, a 42% drop year-on-year from £659m.