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Lloyds Returns To The Black With £1.6Bn Profit

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7924631/Lloyds-returns-to-the-black-with-1.6bn-profit.html

The bank, which accounts for a third of UK mortgages, was helped by a dramatic drop in the the number of loans that turned sour.

Charges for bad loans fell to £6.6bn in the six months to June from £13.4bn in the same period last year. Total income rose 5pc to £12.5bn.

Last year the bank reported a first-half loss of £3.96bn.

"The first half of 2010 was a significant milestone for Lloyds Banking Group as the group returned to profit," Lloyds said in its results statement.

For Eric Daniels, chief executive of Lloyds, the results could bolster his campaign to fight off calls that he should be replaced by a new boss.

Shares in the bank have risen sharply in recent weeks, gaining on the back of last month’s confirmation that the bank had passed the European Union’s stress tests.

Lloyds' strong results followed HSBC’s reporting on Monday of a more-than-doubling in first-half profits to £7.1bn and a return to profits for the combined Northern Rock - 'good' bank and 'bad' bank.

It came alongside record profits today from Standard Chartered which announced a 10pc rise in half-year pre-tax profits to $3.12bn (£1.92bn) as bad debts more than halved and its key Asian markets fared better than those in the West.

Clearly the worst is now behind us the banks are back making money and the recovery is in full swing....

Viva recovery.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7924631/Lloyds-returns-to-the-black-with-1.6bn-profit.html

Clearly the worst is now behind us the banks are back making money and the recovery is in full swing....

Viva recovery.

How about this? Govt. keeps the massive shareholdings, blows up a huge bubble in bank share prices, sells & the top*, whips the support away, buys the shares again cheap.

Rinse & repeat.

I suppose the markets would work out what they were doing and refuse to co-operate.

Edit: *tipping off the UK Pension Funds so that the pain is felt by rich shareholders, foreigners only.

Edited by xux42

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Guest Noodle

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7924631/Lloyds-returns-to-the-black-with-1.6bn-profit.html

Clearly the worst is now behind us the banks are back making money and the recovery is in full swing....

Viva recovery.

Is it not the case that all the liability got loaded onto sovereign debt? In all manner of ways, from bank bailout to mortgage support.

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Taxpayers stand to gain £7.4bn from rescued banks

Guardian headline

The taxpayer was sitting on an estimated paper profit of £7.4bn in the bailed out banks last night after Northern Rock's "bad bank" swung into the black for the first time since the financial crisis.

Amid forecasts that Lloyds Banking Group would jump from a loss to a profit of around £800m when it reports its interim figures today, calculations by the Guardian showed that the banking sector finally appeared to be generating a profit – at least on paper – for the taxpayer.

The stakes in Lloyds and Royal Bank of Scotland were implying a profit of approximately £3.8bn at last night's closing prices – if the fee Lloyds paid to withdraw from the government's toxic insurance scheme is taken into account. Adding in the £2.5bn fee that the asset protection agency, which polices the asset protection scheme, expects to make from RBS, takes the profit to £6.3bn. The £1.4bn of equity that the taxpayer has invested in Northern Rock could be worth around £2.5bn on the basis of the prices at which other UK banks are trading, implying a potential profit of £1.1bn.

Sales of any stakes are not thought to be imminent. City minister Mark Hoban has conceded that selling them off is unlikely in the next 12 to 18 months while the government's commission into whether to break up banks completes its work.

Reporting the first set of figures for the two businesses formed from Northern Rock, which was nationalised in February 2008, chief executive Garry Hoffman acknowledged that he had a "tale of two banks".

The so-called "good bank", which is being primed to compete with the high street banks, remained loss-making in the first six months of the year as income from its mortgage business failed to cover the cost of paying savers, while the "bad bank", shut to new business and containing existing mortgages, shot into profit during the same period as impairment charges fell sharply.

Hoffman said the taxpayer had invested £1.4bn in the equity of the nationalised lender and insisted that he had not been set a deadline to put the bank back into private hands.

The news just gets better.

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Is it not the case that all the liability got loaded onto sovereign debt? In all manner of ways, from bank bailout to mortgage support.

Yes I think the initial investment value was added to the debt, as the share price fell the taxpayer lost money. Now the taxpayer is sitting on a healthy £7bn~ profit, which will come off the debt once the stakes are sold.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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