Lex Autolease parent-bank reveals £4bn loss
05 August 2009
Lex Lloyds TSB logos
Lloyds Banking Group which owns Lex Autolease the UK's largest fleet leasing firm has revealed a £4 billion loss for the first half of 2009.
While the interim results do not breakdown exactly how Lex Autolease performed, the asset finance division of the Lloyds Banking Group which includes the automotive leasing business reported a loss of £250 million, against a £42m profit in the first six months of 2008.
The company's trading statement for the asset finance division said: "Profit before tax decreased by £292 million to a loss before tax of £250 million, primarily reflecting higher
impairment charges from the continued deterioration in the economic environment.
"Income decreased by 13% to £890 million despite continued margin improvement across the businesses.
"The impairment charge increased by 146% to £404 million, reflecting increases in both the retail and non-retail consumer finance business."
The 2009 interim results statement also reported: "Plans are well advanced to bring together the market leading Lex and Autolease contract hire businesses."
In the bank's full results for 2008, the asset finance division took a £57m hit thanks in part to the leasing firm's falling RVs.
At the time, the asset finance division put the £57m hit down to "exceptional" residual value losses on all forms of assets, caused by deteriorating economic conditions. An increase in the list prices of the vehicles on its fleet is another of the factors blamed.