Lloyds posts £10.8bn loss from HBOS
Friday 27th February 2009, 8:59AM GMT.
Lloyds Banking Group today revealed HBOS recorded a pre-tax loss of £10.8 billion in 2008.
Lloyds TSB – which bought HBOS in September last year as the mortgage lender struggled for survival in the credit crisis to form Lloyds Banking – saw pre-tax profits reduced by 80 per cent to £807 million.
The government now owns 43 per cent of the combined group after injecting £17 billion into the business.
Sir Victor Blank, Lloyds Banking chairman, said: “We know the short-term outlook for the enlarged group is challenging.
“Whenever economic conditions do begin to normalise, however, we believe we will be in a very strong position to reap the benefits”
Eric Daniels, Lloyds Banking chief executive, said: “This has been an extraordinary year, by any measure, and as many commentators have observed, we are in the most severe global downturn since the 1930s.”
He added the acquisition of HBOS was “probably the most far reaching event in our 243 year history”.
Lloyds also confirmed it was in “well advanced” negotiations with the Treasury over taking part in the Asset Protection Scheme to insure the bank against losses on its toxic holdings.
Royal Bank of Scotland – which yesterday announced a £24.1 billion loss – said it would put £325 billion worth of assets into the government scheme.
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