Lloyds Banking Group has painted a subdued outlook for the UK economy as the bailed out bank revealed it had plunged to a £3.5bn loss in 2011 and would pay out £375m in bonuses. Chief executive António Horta-Osório reiterated that the prolonged low interest rate environment would mean that some key targets would not be met on time but that the bank would benefit from a faster than expected reduction in impairment charges during 2012. Some 30,000 jobs have already gone as a result of the rescue takeover of HBOS in September 2008 and Horta-Osório earmarked a further 15,000 reductions when he took the helm a year ago. But the bank stressed that the discovery of a further £200m of cost savings for 2014 would not result in further redundancies, with 3,700 roles already removed from the 15,000 total.

• Shares in Lloyds Banking Group biggest faller in FTSE 100
• Taxpayer sitting on £10bn loss on its 41% stake
• Bonus poll down 30% at £375m
• Average bonus for workforce stands at £3,900

Read more here--: Lloyds plunges to £3.5bn loss for 2011 | Business | The Guardian