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Lloyds set for fresh round of bad loans
LLOYDS Banking Group could write off a further £13bn on the loans it acquired from HBOS when it unveils half-year results next month.
The bank’s results are likely to show ongoing deterioration on its commercial property, corporate and mortgage loans, analysts at UBS said, warning that writeoffs for the year could reach £20bn.
UBS forecast that Lloyds would announce a half-year loss of £6.3bn, backing up the bank’s own predictions of a loss-making 2009 and 2010.
The grim outlook comes as Lloyds casts around for a new chairman. The bank’s preferred candidate, Sir Win Bischoff, is unpopular with shareholders due to his association with the woes of Citigroup during his time as chairman.