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Quake exacerbates credit strife for Lloyds in Australasia

Lloyds Banking Group last night flagged a further rise in the impairment charge for its businesses in Australia and New Zealand.In a trading update, Lloyds said it recognised an impairment charge of £1.4 billion in the March 2011 quarter for its international business, which covers Ireland as well as Australia and New Zealand.Most of that charge will relate to the bank's Irish subsidiary, where slumping property prices are a burden for the entire banking industry.In Australasia, Lloyds' problems this quarter can at least be blamed in part on nature rather than the legacy of boom-time lending to Gold Coast property developers.The group also took a charge of £70 million on board as a result of losses arising from the Christchurch earthquake.

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