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Lloyds suffers 4 bln pounds loss due to HBOS bad debts

Wednesday, 05 August 2009

Part-nationalised lender Lloyds Banking Group Wednesday said it made a four billion pounds half-year loss as HBOS's reckless lending took its toll. The bank, which is 43 percent owned by the government, said impairments on bad debt rose "significantly" to 13.4 billion pounds, largely due to HBOS bank. Lloyds was merged with HBOS bank last year in an effort to rescue the latter after it suffered very heavy losses. Due to complex accounting changes, Lloyds posted a statutory six billion pounds pre-tax profit today. Lloyds said HBOS's assets accounted for 80 percent of the impairments. The bank said the fall in property prices over the first six months of the year had a significant effect on the group's results because of the large amount of related loans at HBOS. It said more conservative assessments of HBOS's commercial property assets meant impairments, which were up from 2.5 billion pounds in 2008, should peak in the first half of the year. In a statement, Group chief executive Eric Daniels said, "Our first half loss was driven by the high levels of impairment. "The core business delivered a resilient performance, despite the weak economy. "We are successfully managing the short-term issues and are well positioned to outperform over the medium term, providing value to our customers and shareholders. » No Comments There are no comments up to now. » Post Comment Email (will not be published) Name Title Comment  remaining characters Post

 

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