Lloyds leads way back into profit

Last night's closing share price of 68p means the taxpayer is now sitting on a paper profit.

With the shares expected to rise sharply over the next year, the Government is likely to keep hold of the stake for some time in order to maximise profits.

Lloyds, which is 41 per cent owned by the taxpayer, said positive trends in its business and wider economy helped to return it to profit in the first quarter.

Chancellor Alistair Darling said the return to profit "vindicates" the Government's response to the financial crisis but Liberal Democrat Treasury spokesman Vince Cable said it was irrelevant because Lloyds was failing to lend to business. Lloyds did not provide a profit figure; last year it recorded a 6.3bn loss.

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