HBOS raises writedown figure to £5.2 billion

Nov 3 2008

But Lloyds TSB takeover still on course

HBOS confirmed its hit from toxic debts and bad loans had increased £2.7 billion to £5.2 billion for the first nine months of the year.

In a management statement on third quarter trading the bank said it had been affected by the failure of Washington Mutual and Lehman Brothers in America and some Icelandic banks.

However its proposed takeover by Lloyds TSB was still on course.

Lloyds has announced it expects to make savings of £1.5 billion a year if the deal goes ahead.

Tha banks also plan to raise £17 billion as part of the government bail out plan.