Life in Lloyds yet
Lloyds Bank is bringing its largely dormant Australian branch to life. The bank is marketing a three-year senior domestic debt issue, Insto reports.JP Morgan, Macquarie, RBS and UBS are marketing the transaction for Lloyds.Lloyds International, the main trading arm of Lloyds in Australia, is a non-bank business, and like many foreign banks continues to deal with substantial bad debts, mainly from commercial property loans.In August, the bank reported impairment losses, in sterling, for its Australian business of £454 million for the June 2010 half, equal to 3.5 per cent of a loan book of £12.7 billion.Impairment provisions as a percentage of loans increased to 55.5 per cent at June 2010 compared with 47.6 per cent six months earlier.Earlier this month, in a September quarter trading update, Lloyds "reiterated that, "As outlined at the half year, we have exposure to these areas within our Australian portfolio and this has driven increased impairment levels."