This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8184781.stm

The article has changed 21 times. There is an RSS feed of changes available.

Version 2 Version 3
Lloyds blames HBOS for £4bn loss Lloyds blames HBOS for £4bn loss
(20 minutes later)
Lloyds Banking Group says it has made a loss in the first half of the year, due to mounting bad debts at HBOS, which it took over on 16 January. Lloyds Banking Group says it has made a loss in the first half of the year, due to mounting bad debts at HBOS, which it took over in January.
The group made a loss of £4bn in the first six months of 2009 after taking a huge charge on assets that are worth less than previously thought. The group made a loss of £4bn in the first six months of 2009 after writing down the value of assets that are now worth less than previously thought.
The 43% state-owned bank took a charge of £13.4bn for such write-downs, 80% of which came from HBOS. The 43% state-owned bank took a charge of £13.4bn, mainly for bad loans, 80% of which came from HBOS.
But it added that the write-downs had now probably peaked.But it added that the write-downs had now probably peaked.
Due to accounting technicalities, Lloyds actually made a pre-tax profit of £6bn for the period. BBC business editor Robert Peston said that the results are witness to the quite astonishing risks taken by HBOS.
He added that the better news for Lloyds shareholders is that most of these poor quality loans are now being insured by us, by taxpayers, so future losses will be ours, not the banks.
Lloyds predicted that its charges for bad loans would be smaller in the rest of 2009 and predicted that there would be an upturn in the economy in 2010.
Due to accounting technicalities related to its takeover of HBOS, Lloyds made a pre-tax profit of £6bn for the period.
But the group said that as a result of the takeover of HBOS, that figure is "of limited benefit".But the group said that as a result of the takeover of HBOS, that figure is "of limited benefit".
The takeover also means that it is difficult to find figures for the first six months of 2008 with which to compare these figures, but Lloyds said that the £4bn loss compares with a £2.8bn profit for the same period last year.The takeover also means that it is difficult to find figures for the first six months of 2008 with which to compare these figures, but Lloyds said that the £4bn loss compares with a £2.8bn profit for the same period last year.
Lloyds' shares rose 6% to 89.4 pence in the first half hour of trading.