City File: Latin money lifts the clouds at Lloyds

LLOYDS Bank is set to produce a surprise with its full-year results on Friday and has Itamar Franco, the president of Brazil, to thank. In November, Brazil agreed to repay two years' back interest on its debt and Lloyds, which has lent nearly pounds 900m to Brazil, is set to benefit to the tune of up to pounds 100m.

This will bolster the net interest income line, and Lloyds also plans to write back pounds 190m of excess provisions on its Third World debt.

That is the good news. The bad news is that life at home has been dreadful, and even with the Latin joy, pre-tax profits are only expected to increase by about pounds 100m to pounds 750m.