Bleak macro view pushes Lloyds’ ECL over £5bn
Anticipated loan losses for commercial loans up 39% on end-2019
The Covid-19 outbreak darkened Lloyds’ economic forecasts, imposing a £1.4 billion ($1.7 billion) impairment charge in the first quarter and forcing the bank to revise its expected credit losses (ECL) up 25% on end-2019.
The Q1 provision wiped out almost three-quarters of Lloyds’ earnings – and further impairment charges are likely. In updating its forward-looking scenarios for estimating loan losses, the bank’s ECL amount jumped up £1 billion on end-2019. This figure reflects the probability
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