The company, whose 41% ownership belongs to the U. K. Government after its £17 billion bail-out in October 2008, said its trading performance has been sturdy in the first 10 weeks of 2010, which was established by good income growth, lower-than-expected mutilation supplies and a tight lead on costs.

Lloyds's positive trading update was healthily received by the market, with the stock directing the FTSE 100 leader board mid-morning on the London Stock Exchange, up 8.9% at 60 pence. Shares of fellow providers also benefited, with Royal Bank of Scotland Group PLC and Barclays PLC higher in morning trading, up 6% and 2.4% correspondingly.

Lloyds said destruction supplies are currently trending at lower levels than predicted and as a result, it now expects to bring a better impairment performance than previously shown, in retail and corporate businesses, in 2010. On the whole, the group's current economic and regulatory assumptions, which remain unchanged since recent 2009, preliminary results announcement and the group believes that it will be gainful on a combined businesses basis in
2010.