HBOS set to announce £10bn loss

Lloyds Banking Group warned today that HBOS – the ailing bank it rescued last year – could post annual losses of around £10bn (€11.3bn) for 2008.

The huge losses will be caused by the falling value of the group’s assets and a £7bn (€7.8bn) writedown following a “more conservative” assessment of HBOS’s corporate division.