Lloyds Banking set for '£13bn loss', taxpayer on £11bn loss

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Re: Lloyds Banking set for '£13bn loss', taxpayer on £11bn loss

Lloyds Banking set for '£13bn loss', taxpayer on £11bn loss

Monday, 13 Jul 2009 09:58


Lloyds Banking Group is set to write off up to £13 billion, according to a report, as the government refuses to give a timetable for selling its stake in the bank.

Meanwhile, the taxpayers' holding in LLoyds Banking and RBS is seeing a loss of £10.9 billion,

The Sunday Times said Lloyds Banking will post further losses of £6.3 billion when it publishes first half results in three weeks.

According to the paper, UBS analysts believe the losses this year could reach £20 billion as the costs of merging with HBOS soar.

But UK Financial Investments (UKFI) said it will continue to manage the taxpayers' stake in Lloyds at arms length and has refused to set a timetable for the sale of the shares.

John Kingman, UKFI chief executive, said: "Every UK household will have more than £3,000 invested in shares in RBS and Lloyds.

"Today UKFI is setting out our strategy to deliver on the tasks we have been given: maximising the value of these investments for the taxpayer, and returning the banks as strengthened institutions to full private ownership over time.”

In its first annual report, UKFI stated it was sitting on paper losses of £10.9 billion.

This compares with a £18.1 billion loss in February.

UKFI intends to wait until the share price rises high enough to sell the stake at a profit.

Successful disposal of the stake will take patience, UKFI said.

UKFI figures show the UK owns £15.3 billion in RBS and £8.3 billion in Lloyds Banking.

[natweststaffmember]

Re: Lloyds Banking set for '£13bn loss', taxpayer on £11bn loss

more jobs losses will be announced no doubt.