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HBOS losses sink Lloyds’ shares

Lloyds Banking Group saw its share price go into freefall on Friday after revealing staggering losses of £10bn for HBOS in 2008.

At the time of going to press the group’s shares had regained some ground and stood at 64.8p, down 28%, having earlier fallen as low as 54.9p.

HBOS is expected to see an under-lying loss before tax of £8.5bn and further write-downs of £1.5bn for 2008. By contrast, Lloyds TSB is on track to show a profit of £1.3bn.

Eric Daniels, group chief executive of Lloyds Banking Group, says: “HBOS’ 2008 results were adversely affected by the market dislocation which accelerated significantly in the last quarter of the year, as well as the additional impairments re-quired on the company’s corporate lending portfolios.”


Marketwatch 16/02/2009

Swaps dropped back close to their recent historic lows while three-month LIBOR is now 2.08%.1-year money is down 0.08% at 1.65%2-year money is down 0.11% at 1.99%3-year money is down 0.11% at 2.32%5-year money is down 0.11% at 2.89%

Mortgage lending falls 52% year-on-year

Gross mortgage lending declined to an estimated £12.4bn in January, an 8% fall from £13.5bn in December and a 52% fall from January 2008, show figures from the Council of Mortgage Lenders.

England faces one million housing shortage by 2010

The former chief executive of Barratt Developments has warned that England faces a housing shortage of one million homes by 2010.David Pretty, chairman of the New Homes Marketing Board, claims that the housing shortfall is headed for “dangerously high” levels.He says: “The reality is that we are forming households at the rate of around 230,000 […]

piggy, cash, money

Reassuringly focused on claims

By Ross Jackson, senior protection marketing manager We’re sure you’ll have heard your customers say ‘But insurance companies don’t pay claims’ when giving a reason for not wanting to take out protection. In fact, our State of the Protection Nation research showed that 27 per cent of consumers asked didn’t think protection providers paid out […]


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