Lloyds, the part-nationalised bank that has been hit by its chief executive's temporary absence due to health issues, reported a nine-month loss and said it may have to put back some financial targets due to the economic turmoil.

Lloyds, which is some 40-percent owned by the British government after a state bailout during the 2008 credit crisis, said it made a nine-month loss of 3.86 billion pounds, with its earnings hit by lower banking margins and higher funding costs.

Lloyds said last week that 47-year old Chief Executive Antonio Horta-Osorio had fallen ill and was taking a break, leaving a potential power vacuum at the top of Britain's biggest retail bank.

(Reporting by Sudip Kar-Gupta; Editing by David Holmes)