Investors sell Lloyds as ‘superbank’ reveals £6.3bn loss

Shares in Lloyds Banking Group fell 1.8% this morning after the bank announced a loss of £6.3bn in 2009. Commenting on today's results, Graham Spooner, investment adviser at The Share Centre, said: "Lloyds' results revealed a slightly smaller loss than analysts had expected. The bank, now 41% owned by the British taxpayer, recorded an operating loss of £6.3bn compared with £6.7bn in 2008, following its rescue of ailing mortgage lender HBOS.

"Salvaging HBOS forced the newly created Lloyds Banking Group to go cap in hand to the taxpayer for £20bn. Today, the bank admitted last year's bad debts reached an eye-watering £24bn, which is substantially higher than RBS reported yesterday.

"This morning, Lloyds' share price fell 1.8% to 53.89 pence during early trade. Customers of The Share Centre have reacted to Lloyds' results by selling their holdings in the supposed ‘superbank'; 74% of all deals were sells this morning.

 "On a pre-tax profit basis, the group made a profit of £1bn. Although the bank offers growth potential, Lloyds still remains a high risk investment and investors who have held on hoping for a recovery will have to remain patient. As such, we are listing Lloyds as a ‘hold' at present."