Feb. 24 (Bloomberg) -- Lloyds Banking Group Plc said impairment charges on Irish loans fell to 3.19 billion pounds in 2011 from 4.26 billion euros in the previous year.
“Following higher charges in 2010, especially in the fourth quarter as the economic environment in Ireland deteriorated, the rate of impaired loan migration has slowed,” Lloyds said in a statement today.
While the charge is down, an increase in impaired loans in Lloyds’ wealth and international division, “predominantly relates to the group’s non-core book in Ireland where impaired loans increased by 1.9 billion pounds during 2011 reflecting ongoing difficulties in the economy,” the bank said.
Some 84.3 percent of Lloyds’ 17.7 billion pounds of Irish wholesale loans were classified as impaired at the end of December, and 20.1 percent of its 7 billion-pound Irish retail book was impaired.
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