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zugzwang

Lloyds Bonus Pool Up 10% Yoy

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Only one condition, Gidiot's got to sell half the govt stake this year. But he was going to do that any way in an effort to buy the General Election.

Trebles all round!!

http://news.sky.com/...on-395m-bonuses

By Mark Kleinman, City Editor

The taxpayer-backed Lloyds Banking Group is to pay bonuses of around £395m for last year, including an award of more than £1.5m to its chief executive.

Sky News can reveal that an agreement was reached on Tuesday between Lloyds and UK Financial Investments (UKFI), which manages taxpayers' 33% stake in the bank, about the payouts.

Under the deal, to be announced alongside Lloyds' full-year results on Thursday, the bank will pay a total of just under £400m in bonuses, up approximately 10% on last year's £360m pool.

Antonio Horta-Osorio, Lloyds' boss, will receive an award of just under £2m in shares, deferred for five years.

The bonus will only vest if Lloyds' share price remains above the average 73.6p price at which taxpayers bailed out the bank in 2008 for a continuous period of six months, or if the Government sells at least half of its remaining stake at a profit.

The conditions are key because George Osborne, the Chancellor, will be able to argue publicly that Mr Horta-Osorio will only benefit when taxpayers also make money from their investment.

Despite Lloyds' improved performance during 2013 a rise in bonuses may prove contentious after it last week added a further £1.8bn to its bill for payment protection insurance compensation. Its liability from the scandal now stands at close to £10bn.

RBS is expected to award bonuses totalling roughly £500m, while making a loss of about £8bn. Lloyds, meanwhile, will record a statutory profit expected to total several hundred million pounds.

Last Monday, the bank said it anticipated reporting an underlying profit for 2013 of £6.2bn and a small statutory pre-tax profit once mis-selling provisions had been accounted for.

"Subject to a return to sustainable profitability and there being no major unexpected changes in the Group's business outlook or regulatory requirements, the Board expects that it will apply to the PRA [Prudential Regulation Authority] in the second half of 2014 to restart dividend payments," Lloyds said.

Edited by zugzwang

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Jane Tracy had a good piece t'other day

http://www.mindfulmoney.co.uk/wp/shaun-richards/we-still-need-to-reform-our-banks-six-years-into-the-crisis/

'A feature of the credit crunch era has been that the needs of the banking sector have been prioritised over the needs of the real economy. Each time they come to a choice our political establishment chooses the banks and that has led to thoughts that we now live in a type of bankocracy. This theme stretches way beyond the boundaries of the UK as for example the Euro area bailout package for Greece has been more successful in rescuing the French and German banks involved there than the Greek economy or indeed the needs of the Greek people.'

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Jane Tracy had a good piece t'other day

http://www.mindfulmoney.co.uk/wp/shaun-richards/we-still-need-to-reform-our-banks-six-years-into-the-crisis/

'A feature of the credit crunch era has been that the needs of the banking sector have been prioritised over the needs of the real economy. Each time they come to a choice our political establishment chooses the banks and that has led to thoughts that we now live in a type of bankocracy. This theme stretches way beyond the boundaries of the UK as for example the Euro area bailout package for Greece has been more successful in rescuing the French and German banks involved there than the Greek economy or indeed the needs of the Greek people.'

We live in a kleptocracy - fulfilling the needs of the few. But its how its always been - we just got in lots of debt since around 1981 and people didn't notice. Governments need bankers to allow them to borrow money for election promises. They will always do what the bankers say or their UK debt magically doesn't sell as well for a few months. Its basically a gambler (government) being extorted by the bookie (bankers). Our growth will be illusionary but the government is trying to do some of the right things. Link pensions to longevitty statistics; rebalance industry by providing grants to possible new hi tech manufacturing and space travel industries etc..But these things take a generation...in the mean time, to win an election they have gone back to the good'ol housing market to make the 50+ year old voters happy.

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Return to profit by Lloyds may prompt second share sale

Lloyds Bank has said it returned to profit in 2013.

Lloyds reported a statutory pretax profit of £415m ($690m) for the first time since its £20.5bn bailout.

UK Financial Investments which manages the government's 33% stake, sold a 6% shareholding in the bank last September.

The Chancellor of the Exchequer, George Osborne, has said he wants to sell more shares in the bank to the public before the next election in 2015.

In 2012, Lloyds made a loss of £606m.

Underlying profits in 2013 for the banking group rose 140% from £2.6bn to £6.2bn.

The banking recovery.

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Only one condition, Gidiot's got to sell half the govt stake this year. But he was going to do that any way in an effort to buy the General Election.

Trebles all round!!

I guess when it is sold off the fictional money will be seen as a surplus pot to be pished up the wall in any way possible.

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20.5bn bailout. The op quote has ppi provision total at 10.5bn. I don't think they have been paying divs. The needed the plethora of boe support schemes - the capital 20.5bn was clearly no where near enough. Doing a share issue transfers back to private. I bet they will be back with their begging bowl. The issue will be priced cheap.

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It's a good sign for us.

The last time the banksters did this was just before everything went pop - they know it's on the way so are taking what they can before it crashes again.

I think that when RBS / LLoyds are re-privatised we should start a HPC sweepstakes on how long till the next rescue..

Next crisis might be interesting. Last time, we started out with IRs at about 5%, a debt/GDP of about 45% and a small deficit. Next time we may have to take drastic measures, perhaps stop bankrupt companies paying bonuses..

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I think that when RBS / LLoyds are re-privatised we should start a HPC sweepstakes on how long till the next rescue..

Next crisis might be interesting. Last time, we started out with IRs at about 5%, a debt/GDP of about 45% and a small deficit. Next time we may have to take drastic measures, perhaps stop bankrupt companies paying bonuses..

Doesn't even need to be a crisis. Just a bog standard regular recession will do. Base rates will be no higher than 2-3%, BoE b/sheet will be holding c. £375bn of govt debt we're not yet 1/2 way through 'austerity'.

That's before we go into the inevitable recession.

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Underlying profits in 2013 for the banking group rose 140% from £2.6bn to £6.2bn.

Do they have a line of 'Profits obtained by deception of customers (to be repaid with interest in a few years)'?

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