Lloyds profits leap, but business lending is flat

Lloyds bank has reported profits of £1.603bn for the first half of this year – a marked turnaround from the £3.957bn loss reported in the first half of 2009.

The improvement is in large part due to an easing of loan-related losses which Lloyds suffered in 2009. However, Lloyds said its net lending to businesses was still flat because there was little demand for money to invest in the current economic climate.

Eric Daniels, chief executive of Lloyds, said: "We are seeing very little demand out there... so it is not a question of us being mean and turning customers away."

Daniels also poured cold water on talk of a double dip recession, saying: "What we are expecting is a very gradual recovery – but that is not bad news. It is much better to have a gradual, steady recovery."

Read a full report at the Financial Times (registration required). ·