HBOS bad debt charges soar to $7.5 billion
The group said impairments on corporate loans have jumped over 90% in two months to 3.3 billion pounds from 1.7 billion pounds at the end of September. Charges for secured retail lending rose 75% to 700 million pounds and unsecured lending charges increased 25% to 1 billion pounds over the same period.
The bank, which is planning to raise 11.5 billion pounds, mostly from the government, and is being bought by Lloyds TSB, (UK:LLOY: news , chart , profile ) said the continued weakening of the U.K. economy means impairment charges are likely to rise further.
On top of those charges to cover customers who can’t make their loan repayments, HBOS (UK:HBOS: news , chart , profile ) said write-downs due to the turmoil in financial markets were 2.2 billion pounds for the first 11 months of the year, up from 1.8 billion pounds at the end of September.
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