Lloyds Banking Group upbeat on its 2010 results

Lloyds Banking Group says its had a good third quarter and is on track for a decent performance in 2010 as bad debts fall and margins improve.

The group is 41% owned by the government, also said it was on track to achieve savings of around £1.3bn in efficiencies from its ill-fated merger with HBOS by the end of this year and £2bn by the end of 2011.

Lloyds, along with other banks, has been heavily criticised by the current government for not lending enough but today the bank said demand for new lending remains "subdued" and that loan repayments are strong.

Claire Kane is an analyst with MF Global and told the BBC the reason the margins have improved is due to Lloyds re-pricing its mortgages.

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