Lloyds won’t be safe and boring for a very long time until it rids itself of all the non traditional businesses.
Since 2008 financial crisis, Lloyds has been technically insolvent which the government at the time soon realised. However, Lloyds and RBS problems for the government were very different and to be resolved required different actions.
Lloyds business were all bad and could not be sold in parts as RBS was carved up leaving just a bad bank. At the time, Lloyds knew of its pension liabilities, credit card bad debts, PPI etc but could not place a one off liability of over £85bn when the market capitalisation was considerably less. The Lloyds directors and government derived the only way out, was using Gordon Brown tactics in reverse, by drip feeding these known liabilities from future investment income to a level that is acceptable by the market. this enabled Lloyds to continue as an ongoing business. However, Lloyds did not expect the security of the car leasing being eroded by falling car prices from over supply of second hand cars.
With the current generation being told that it is OK not to repay student loans, this will have increasing bigger effect of bad debt on normal bank loans and credit which will eat into Lloyds profits for the next 20 years.
Lloyds need to tighten up on credit return transactions as unpaid.