Lloyds may set aside £5bn of provisions on mortgages this year and post a net loss of £292m as the UK suffers a “sharper downturn” and slow recovery said Rohith Chandra-Rajan, analyst at Barclays Capital, in a note to clients today.
The note said: “Rising unemployment, falling household incomes, a fragile property market and corporate cash flow all challenge a continued improvement in credit quality.”
Today Prime Minister David Cameron said the country was “in difficult economic times” and that shifting the economy away from a “debt-fueled boom” was taking time.
