At Lloyds, losses caused by "market dislocation", the slowdown in the UK economy, and the impact of falling house prices, came to £3bn.
Referring to its takeover of HBOS, which was completed in January, Lloyds said that it had "acquired a franchise that brings extensive distribution, a large customer base, good people and excellent brands".
When the deal was originally announced in September, the government backed the move using a special national interest clause, on the grounds that a collapse of HBOS would have had a disastrous impact on the UK.
This got around any potential anti-competition objection.
The new Lloyds Banking Group controls about 25% of British customers' personal bank accounts and about 28% of the mortgage market.
It comes a day after Royal Bank of Scotland revealed a record UK loss of £24.1bn and a new bail-out worth up to £25.5bn.
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Chris Skinner, an independent banking analyst and chairman of the Financial Services club, said: "At least they [Lloyds] made a profit, which is better than the Royal Bank of Scotland."
"We know the short-term outlook for the enlarged group is challenging," said Lloyds chairman Sir Victor Blank.
"Whenever economic conditions do begin to normalise, however, we believe we will be in a very strong position to reap the benefits."
Lloyds' five executive directors have all voluntarily agreed to forego any bonus they may be awarded for 2008.
"The huge losses announced by Lloyds Banking Group further illustrate the dire straits in which the financial system finds itself," said Derek Simpson, joint leader of union Unite.
"More than ever, it is essential that the new Lloyds Banking Group retains and protects its hard working staff."
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