<p><br /> Part-nationalised Lloyds Banking Group has confirmed it returned to profit in the first three months of the year after a marked slowdown in bad debts.<br /> </p><p><br /> The bank, which is 41 per cent owned by the taxpayer, said it expects to sustain the "momentum" throughout 2010 and report profits at both the half year and full-year stage.<br /> </p><p><br /> Its first quarter performance marks a significant turnaround on the £6.3 billion losses reported for 2009 after the HBOS takeover and financial crisis left Lloyds with a colossal £24 billion in bad debts.<br /> </p><p><br /> Lloyds said it saw a significant slowdown in the level of bad debt charges as improving economic conditions help borrowers on to a firmer footing.<br /> </p><p><br /> But the first-quarter return to profitability came mainly as a result of a better-than-expected improvement in impairment charges in the wholesale business, according to the group.<br /> </p><p><br /> Eric Daniels, group chief executive of Lloyds, said: "I am pleased to report that we returned to profitability in the first quarter and expect this momentum to be sustained throughout 2010."<br /> </p>
