Lloyds to meet profit targets despite IVAs

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Of interest:
The bank also confirmed earlier guidance that the bad debt charge at its retail banking unit will be no higher in the second half than in the first, despite a continued rise in the number of overstretched UK borrowers entering Individual Voluntary Agreements (IVAs) -- a less onerous form of bankruptcy under which lenders are required to write off part of the outstanding loan.

In the first half of the year, bad debts at Lloyds' retail bank jumped 16 pct to 632 mln stg, accounting for the bulk of the overall bad debt charge of 680 mln stg. Lloyds blamed the growing popularity of IVAs, and warned that growth in their numbers would be a key influence over its bad debt charge in future.


from site:
http://www.forbes.com/business/feeds/af ... 43744.html