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Banks Can't Claim Credit For This Year's Profits, Says S&p

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7966355/Banks-cant-claim-credit-for-this-years-profits-says-SandP.html

Changes implemented by management teams of Barclays, HSBC, Lloyds and RBS played only a bit part in the recovery as factors beyond their control – such as government stimulus programmes – were far more important in boosting the performance of their businesses.

The credit-rating agency's analysis of the sector said: "We understand that a range of management actions have contributed to the improved performance. However, the more important contributory factors were the developments beyond the control of the banks' management.".

S&P's verdict follows the return to profitability earlier this month of the UK's largest banks, which reported combined first-half profits of more than £15bn.

The report concludes that the future credit ratings of British lenders banks are likely to largely remain out of the hands of their management teams.

Economic and market developments will continue to be the biggest influence on the credit ratings of British lenders, says S&P, which warned that their future profitability remains tied to inextricably tied to the wider financial backdrop.

"We expect that economic and market developments that are largely beyond the control of banks' management teams will continue to disproportionately influence UK bank ratings through the remained of 2010," the report said.

S&P's concerns centre on UK government economic policy, which it expects to squeeze incomes, and the continued reliance of many institutions on state-guaranteed funding.

It also warned that the Independent Commission on Banking, which will report in September 2011, has "uncertain, but potentially important, implications for banking industry risk".

But hey the big bosses still got there bonuses because profits are up, who cares how much of those profits where down to their skills, profit is profit after all.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7966355/Banks-cant-claim-credit-for-this-years-profits-says-SandP.html

But hey the big bosses still got there bonuses because profits are up, who cares how much of those profits where down to their skills, profit is profit after all.

...personal banking paying deposits at circa 1% or less while arranged overdrafts are charged 15% to 19% ....this is no longer High Street Banking ...it's in-the-gutter back street robbery..... of course they are making profits....but like Highwaymen they should be given their punishment.....not bonuses..... :rolleyes:

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...personal banking paying deposits at circa 1% or less while arranged overdrafts are charged 15% to 19% ....this is no longer High Street Banking ...it's in-the-gutter back street robbery..... of course they are making profits....but like Highwaymen they should be given their punishment.....not bonuses..... :rolleyes:

The banks were told they had to earn their way back to viability.

Do you all assume they would do this by only charging RICH PEOPLE more?

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  • 146 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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