The recession’s totally over – at two of our biggest banks, the money is really flowing (well inside at least).

In a trading update, Lloyds Banking Group has predicted that it will return to profit this year. Lloyds made an operating loss of £6.3bn last year but has started this year with a bang.

“In the first 10 weeks of 2010, the Group’s trading performance has been strong and we are pleased with the Group’s performance against each area of recent guidance.

“Overall, based on the group’s current economic and regulatory assumptions which remain unchanged since our recent 2009 preliminary results announcement, the group believes that it will be profitable on a combined businesses basis in 2010.”

And in its latest annual report RBS has earmarked £4.8m a year in shares for its white knight Stephen Hester. Hester turned a £24bn loss in 2008 to just £3.6bn last year. Well, plastic surgeons get paid for making people less ugly, so why not.