Lloyds International's Australian business made a loss of A$148 million in 2012 - its fourth consecutive year of losses. The bank's local chief executive, Paul Gordon, told the Australian Financial Review that it was on track to return to profit this year after a major restructuring.The bank's balance sheet was cut back from $15 billion to $10 billion last year, as it sold non-performing assets. Among the sales was a portfolio of distressed commercial property loans in Australia and New Zealand. Its assets have fallen from a peak of $30 billion.Gordon said the bank was concentrating on commercial banking and asset finance. The asset finance division, Capital Finance, accounted for $6.3 billion of assets. It grew 16 per cent last year.According to the Lloyds Banking Group financial report, which was released last week, the Australian business has restricted its commercial banking activity to "key clients with strong UK linkage".The impairment loss last year was $411 million, compared with $1.2 billion in 2011 and $1.6 billion in 2010.