Shares in Lloyds Banking Group fall 15%

Shares in Lloyds Banking Group are taking a hit this morning as talks continue over the value of assets to be placed in the Treasury’s Asset Protection Scheme.

It had been expected that Lloyds Banking Group would announce the level of assets to be cordoned off in the scheme alongside its results released earlier today.

News that the group has as yet failed to reach an agreement with government has caused shares to drop 15% from yesterday’s closing price 74p to 63p.

Lloyds Banking Group has unveiled a pre-tax profit of £807m, a fall of 80% from 2007.

But HBOS made a pre-tax loss of £10.8bn, with £ incurred through losses on non-performing loans.