Lloyds Banking Group says it has not finalised details of its plan to put billions of pounds of assets into a UK government-backed insurance scheme.
The company said HBOS - which owns Bank of Scotland Ireland - suffered a 2008 loss of £10.8 billion as it was hit by £9.9 billion of losses on bad loans and credit market losses.
Lloyds said the former Lloyds TSB business made a profit of £807m, down 80% from from £4 a year earlier, as its impairments jumped to £3 billion. HBOS's loss was in line with guidance Lloyds gave two weeks ago in a profit warning. It indicates that the combined group made a loss of more than £10 billion.
Lloyds said talks with the UK government on an asset insurance scheme 'are progressing and are well advanced'. The British government owns a 43% stake in Lloyds, after supplying £17 billion under a rescue plan in October.
The group said it expected to report a loss for this year, with impaired loans continuing to run at high levels, especially in parts of the HBOS business.
Bank of Scotland Ireland figures show a loss before tax of €250m. Customer deposits are down 32%, though loans grew by 8%.
The severe deterioration in the Irish economy has led to rising arrears and falling asset values which, in turn, has resulted in a significant increase in impairments. The bank has set aside around €500m to cope with potential bad debts.
