Lloyds TSB record £200m losses from credit crunch
by Richard Kilner
It has emerged that the credit crunch, caused by the US subprime mortgage crisis, has led to a writedown of £200m for Lloyds TSB, the UK’s fifth largest bank.
The losses are smaller than those recorded by rivals Barclays and the Royal Bank of Scotland as Lloyds’ exposure to high risk mortgages is more limited .
Despite the writedown the bank expects to meet its predicted profit margin.
The losses are all caused from areas that have been adversely affected by the worldwide credit crunch that occurred in the wake of the US subprime mortgage market crisis, and mortgage backed bonds have cost the bank £89m
Corporate Markets also saw a write down of another £90m due to liquidity and credit markets.
A further £22m was lost on SIVs (structured investment vehicles).