Lloyds to take 450 mln stg hit on pubs loan -paper

LONDON, June 14 (Reuters) - Part-nationalised British lender Lloyds Banking Group (LLOY.L: Quote, Profile, Research) is to take a 450 million pound ($742.7 million) hit on loans it made to pubs group Admiral Taverns, the Sunday Times reported without citing sources.

The paper said the loss reflects a decline in the value of Admiral Taverns' estate as a result of the economic downturn. The estate was built up in part through acquisitions financed by loans from HBOS, which Lloyds took over last year.

Lloyds warned alongside its annual results in February that loan impairments "will continue to run at high levels" this year.

The bank's impairment losses for 2008 rose 68 percent on the year to 3.01 billion pounds, driven largely by HBOS' property and corporate loan book.

Separately, the Times said Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research) may join a list of potential bidders for the third-party funds business of its investment management unit, Insight.

Other possible buyers of the business include a team led by Insight's own head, Abdallah Nauphal, according to media reports earlier this week [ID:nB471244].

Lloyds declined to comment.

Lloyds, 43 percent owned by the British government as a result of a 17-billion-pound bailout last year, is expected to make disposals to eliminate duplication following the HBOS deal.

The bank has also warned that it may be forced to sell units to comply with European Union rules on state assistance for businesses.

(Reporting by Myles Neligan; editing by John Stonestreet)