The toxic debt held by HBOS has seen new owners Lloyds Banking post losses of four billion pounds.
Bad debts and impairments stand at just under thirteen and a half billion pounds, largely down to Halifax's heavy property portfolio of mortgages.
Eric Daniels, the chief executive of Lloyds, said that impairments in the second half of 2009 will be substantially lower and the figures should make for better reading.
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