Lloyds Banking Group plunges into red after HBOS takeover

February 27th, 2009 - 4:30 pm ICT by IANS  

London, Feb 27 (DPA) Lloyds Banking Group Friday reported 2008 losses of 9.9 billion pounds ($14 billion) following its growth into a “superbank” through the emergency takeover of Halifax Bank of Scotland (HBOS) last September.
Lloyds core division made a pre-tax profit of 807 million pounds in 2008, but HBOS, Britain’s biggest mortgage lender, had suffered losses of 9.9 billion pounds, the banking group said.

Even so, Lloyds 2008 profits were 80 percent lower than in 2007.

The government-backed takeover at the height of the banking crisis last September had been highly controversial, and the combined group is expected to announce major job losses in its 145,000-strong global workforce.

The government has a 43 percent share in the combined group.

The figures come a day after Royal Bank of Scotland (RBS) announced a record annual loss of 24.1 billion pounds for 2008 - the biggest in British corporate history.

But, unlike RBS, which placed 325 billion pounds of toxic assets into a new government-backed insurance scheme, Lloyds Banking Group said Friday that no agreement had been reached on such a transfer with the government.

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