Lloyds could be forced to write off a further swath of loans made by HBOS to hundreds of companies, after figures showed many of the loans are worth only a fraction of their original value.

The troubled bank has made huge loans to commercial property developers, hotel chains and leisure companies, and is expected to wipe hundreds of millions of pounds off the value of its loan book, in addition to the £10bn Lloyds struck off its balance sheet last week, as the economy worsens and many of the businesses that borrowed money go bust.

The Guardian