Are you an HBOS shareholder? Are you having trouble deciding whether to take stock up in the placing and open offer? Well, a quick look at Friday’s trading statement should settle things.
There is red ink everywhere.
Rising impairment charges in secured lending, unsecured lending, corporate lending, the HBOS investment portfolio has taken a huge hit, losses due to market dislocation have increased by £400m since the end of September – oh, and the bank has to find £200m to pay in the Financial Services Compensation Scheme.
All told, impairment charges have risen to £4.5bn in the period to end-November.
But HBOS remains upbeat:
through the injection of capital and liquidity facilitated by the UK Government, both currently and going forward, HBOS remains confident in its ability to navigate through this difficult period, as it becomes part of the enlarged Lloyds Banking Group.
Shares HBOS were down 7.5p at 80.1p at the opening on Friday, while its suitor LLoyds TSB was off 14p at 143.6p. Just what have they bought?