Lloyds Banking Group has returned to the black with a pre-tax profit for fiscal 2010 of £2.2m ($3.5m), compared with a loss of £6.3m loss in 2009.
After one-off integration cost arising from its acquisition of HBOS and taxation, the bank fell into the red with a net loss of £258m, compared with a net profit of £2.95bn in fiscal 2009.
Profit before tax at the bank’s retail banking business more than tripled from the previous year, from £1.4bn in 2009 to 4.7bn in 2010.
Impairment charges at the unit fell by 35% to £2.75bn.
Retail banking net interest income increased 18% year-on-year to £9.4bn.
Retail deposits were up 5% year-on-year to £235bn.
Lloyds’ cost-income ratio fell from 48.4% to 46.6% in the twelve months to 31 December.