Thursday, May 07, 2009
No cash left over to lend out in mortgages then?
Telegraph: Lloyds Banking Group expects more of its company loans to sour
Lloyds Banking Group has warned that corporate loan impairments will this year soar more than 50pc above the already overwhelming levels of 2008. In an interim management statement that was abruptly brought forward, the bank said yesterday that it anticipates further corporate defaults for the rest of the year, "notably in the commercial real estate portfolios in the UK and Ireland". It added retail bad debts would also rise "significantly". Lloyds TSB and HBOS recorded corporate impairments totalling about £9bn in 2008 – pointing to a figure approaching £15bn this year. Banking analyst Alex Potter said he was "shocked" that the bank's loan book was deteriorating so quickly. Nic Clarke, another analyst, said he was "stunned". [What are these analysts paid for exactly? - D.]
3 Comments
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1. enuii said...
That's also why they downgraded all their existing customers high interest internet based savings accounts, getting 35p per month interest on £5K per month is basically treating people with cash savings like dog mess. How long before these savings start migrating elsewhere on what remains of the high street banking system and what further detrimental effect will it have on Lloyds balance sheet when it does.
At least Gordon is getting sweet F.A. in tax from near zero interest rates.
2. drewster said...
enuii.... Gordon doesn't care about tax on interest; he has his own printing press to play with now!
3. mander said...
Guess what a very inteligent English guy married a virgin girl from Highlands Scotland and at the wedding night Braveheart realised that the girl was not a virgin. But hey it is the love not the purity waht matters. Just print some more money. Preserving wealth is more important.