Portent Posted August 1, 2005 Share Posted August 1, 2005 I've just seen an article on BBC News 24 (their Business Today section) interviewing Steven Green (HSBC CEO). Despite a 5% increase in profits the UK was the worst of their markets for bad debts. The presenter of the article also mentioned that their profits had in the past been underpinned by mortgage lending and consumer credit but "now that party is over". Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted August 1, 2005 Share Posted August 1, 2005 (edited) From The News Blog "The most difficult credit market currently remains the UK, where interest rate rises in 2004, combined with slower growth in employment and a subdued property sector, have contributed to an increased loan impairment charge in unsecured personal lending."Sir John said that HSBC began taking actions to reduce this trend late last year "and they are now beginning to be reflected in our credit outlook". The banking giant said that "for the foreseeable future", the US, Asia and particularly China would be the main drivers of its growth. Shares in HSBC rose by 7.5p to 930.5p, an increase of nearly 1 per cent that values the group at just less than £104 billion. Guess whose got my money. Edited August 1, 2005 by Charlie The Tramp Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 1, 2005 Share Posted August 1, 2005 (edited) "The most difficult credit market currently remains the UK, where interest rate rises in 2004, combined with slower growth in employment and a subdued property sector, have contributed to an increased loan impairment charge in unsecured personal lending." Nothing to do with carpet bombing the UK with credit then and lending to any idiot who responded to the ads for instant money in their back pocket? Edited August 1, 2005 by OnlyMe Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted August 1, 2005 Share Posted August 1, 2005 (edited) Nothing to do with carpet bombing the UK with credit then and lending to any idiot who responded to the ads for instant money in their back pocket? <{POST_SNAPBACK}> Well that makes me feel better, I tested them months back by applying online for a 15k loan and they turned me down as did all the others. Told the truth said earned income was nil, they did not ask what unearned income was. Edited August 1, 2005 by Charlie The Tramp Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 1, 2005 Share Posted August 1, 2005 Well that makes me feel better, I tested them months back by applying online for a 15k loan and they turned me down as did all the others. Told the truth said earned income was nil, they did not ask what unearned income was. <{POST_SNAPBACK}> Obviously far too honest Charlie. Does make you wonder just what sort of state the whole credit scoring system is in? Quote Link to comment Share on other sites More sharing options...
mustrum_ridcully Posted August 2, 2005 Share Posted August 2, 2005 Did anyone see the programme on the BBC last night (7.30pm) about banks and irresponsible lending. I'm not surprised banks have problems with bad debts if they lend to people who can't read or write (so can't understand what they're signing up to), don't have jobs, are manic depressives with no jobs... Then they force their employees to sell loans to people doing cold calling (forcing them to file reports if they fail to sell a loan) even getting to sell loan from home. Somebody stop the world I want to get off! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 2, 2005 Share Posted August 2, 2005 forcing them to file reports if they fail to sell a loan Wasn't it forcing them to file a report if they failed to sell the insurance product with a loan? Incredible behaviour either way, with an obvious slant to put pressure on the product seller. Quote Link to comment Share on other sites More sharing options...
mustrum_ridcully Posted August 2, 2005 Share Posted August 2, 2005 Here's a link to the website http://news.bbc.co.uk/1/hi/programmes/real_story/default.stm http://news.bbc.co.uk/1/hi/programmes/real_story/4728741.stm To quote the later article: " Real Story was leaked an internal Lloyds TSB report which assessed the performance of 1,000 account managers. Among the bottom 50, many were failing to sell a variety of financial products - yet were hitting their targets for selling loans. This tallies with the view of industry observers that performance targets drive staff to concentrate on selling loans - and not necessarily responsibly. " Bit further on "But several former and current branch managers contacted the programme to say the pressure to meet targets was unbearable. "You wake up in the middle of the night thinking 'Oh my God, where am I going to get customers?'" said one man. " I think this might be worth a seperate thread you know... Quote Link to comment Share on other sites More sharing options...
IP Newcomer Posted August 2, 2005 Share Posted August 2, 2005 On irresponsible lending - my wife got a letter from her bank, Abbey. Now they actually forced her off her current account because she was not a good enough prospect (we keep our finances seperate so they don't know that our joint finances are fairly healthy). Well this letter was offering to lend her up to £20 000 without a credit check. It was the first line that got me. "What could you do with some more money? Replace that eye sore of a shed, upgrade to a bigger car or go on an exotic holiday?" With £20K! Well that's off my chest. Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted August 2, 2005 Share Posted August 2, 2005 (edited) HSBC has dispelled any remaining doubt that the High Street Banks are beginning to wonder whether it was really such a good idea to allow British consumers to embark on a £1 trillion debt spree. Nor did I. HSBC reckons personal bank customers in the UK are among the most indebted in the world. Tell me something new. The men who run HSBC are in little doubt that the UK economy will weaken this year. If, as expected, the Bank of England cuts interest rates this week, it is unlikely to make a huge difference to the new mood of caution among borrowers. The days of easy money for the High Street Banks are over. Up go interest rates on loans and credit cards to up their profits and pay the investers. Whose for a housing boom, and HPI? Edited August 2, 2005 by Charlie The Tramp Quote Link to comment Share on other sites More sharing options...
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