Lloyds International recorded a loss before tax of A$1.82 billion in the year to December 2010, with impairment charges climbing as the bank covered the costs of separating its corporate banking business from BankWest.While the trading difficulties of the Australian arm of Lloyds Banking Group are known from the financial reporting of the parent entity in the UK, the annual financial statements provide a further view into the affairs of the banking business in Australia that was most affected by the financial crisis, and its over-exposure to commercial property developers.Lloyds took a charge for bad debts in 2010 of $2.29 billion up from a charge of $1.67 billion in 2009.In the brief review of operations, management wrote that the impairment expenses were "spread amongst the corporate, property and asset finance business of the group", but noted that property accounted for the "major portion of the charge".Impaired loans as a percentage of advances were 28.7 per cent at the end of 2010, up from 14.3 per cent at the end of 2009.Lloyds collected $600 million in new capital from its UK owner over the year, to compensate for $2.4 billion in losses over the last two years.Loans fell $4.6 billion to $19 billion over 2010.Other drags on profit were a rise in operating expenses of 14 per cent, to develop new systems following the sale of Bank of Western Australia to Commonwealth Bank at the end of 2009, as well as the cost of setting up the new foreign bank branch of Lloyds, which began trading earlier this year.There was also a goodwill impairment of $88 million, with no reference to the affected asset.