As expected, the quarter saw a sharp increase in loan impairments. However, one can wonder if the increase was not capped by the group’s willingness to keep its results afloat. Management’s downbeat guidance in terms of revenue recovery potential and cost reduction does not bode well as regards the group’s future credit loss absorption capacity.
30 Jul 2020
Reduced credit loss absorption capacity
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Reduced credit loss absorption capacity
Lloyds Banking Group plc (LLOY:LON) | 51.7 0 0.2% | Mkt Cap: 32,934m
- Published:
30 Jul 2020 -
Author:
David Grinsztajn -
Pages:
2
As expected, the quarter saw a sharp increase in loan impairments. However, one can wonder if the increase was not capped by the group’s willingness to keep its results afloat. Management’s downbeat guidance in terms of revenue recovery potential and cost reduction does not bode well as regards the group’s future credit loss absorption capacity.