- banking - financial crisis - UK
AFP - Britain's Lloyds Banking Group, 43-percent state owned after a bailout, said Friday its HBOS operations made a pre-tax loss of 10.8 billion pounds (12.1 billion euros, 15.4 billion dollars) last year.
LBG said in a results statement it expected the group to make a loss this year and was in talks with the British government about ring-fencing toxic assets.
The bank was formed from the merger this year of the former Lloyds TSB and the troubled HBOS, which was badly hit by the credit crunch.
Profits for the former Lloyds TSB part of the group were slashed by 75 percent, from 3.29 billion pounds in 2007 to 819 million pounds in 2008.
LBG said it continued to hold discussions with the government on joining a scheme to ring-fence toxic assets which are at the heart of the global financial crisis.
The latest grim financial news comes a day after Royal Bank of Scotland unveiled a record British corporate loss of 24.1 billion pounds, coupled with an announcement that it will need a new state bailout worth up to 25.5 billion.