Bailed-out Lloyds has £2.2bn profit

Part-nationalised Lloyds Banking Group has revealed its first annual profit since being bailed out at the height of the financial crisis.

The group, which is 41% owned by the taxpayer, reported pre-tax profits of £2.2 billion – a marked improvement on the £6.3 billion loss in 2009.

The bank’s bad debt losses narrowed in 2010 to £13 billion, from £23 billion the previous year, but it saw an increase in international impairment charges driven by the impact of the Irish debt crisis.

Lloyds has already revealed its bonus plans, with outgoing chief executive Eric Daniels being awarded £1.45 million for 2010.