Losses profits at Lloyds Australia

Lloyds Banking Group may further "reshape" its business in Australia, a brief media statement circulated on Friday states.

On Thursday, Lloyds said it planned to halve its international presence over the next three years, reducing its overseas presence to fewer than 15 countries from the present 30.

The bank's Australian subsidiary, Lloyds International, wrote in a statement, sent out through an external public relations firm, that the "outcome of the strategic review has endorsed our current strategies". It added that "we understand the strength of our operations and we have made great progress around reshaping and aligning our business to drive value."

The Australian business, which has around A$20 billion in assets, is the group's largest international operation.

The statement also noted that "whilst [the] outcome doesn't have a direct, immediate impact on us, it does open up the possibility to reshape our business in the future… and this will be considered carefully."

The authors of the Lloyds International statement also asserted: "Our operating businesses are profitable, and we are well on track to meet our business targets for 2011."

Lloyds International recorded a loss before tax of A$1.82 billion in the year to December 2010. 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.

The average ratio of impaired loans for banks in Australia is a shade more than one per cent.

In May, Lloyds flagged a further rise in the impairment charge for its businesses in Australia and New Zealand.