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Barclays Show Record Profits

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This is a nugget though;

"Obviously, the question is what happens in 2006 and some analysts have been hoping that the problems on the consumer credit side will start to flatten out into this year," said Richard Staite, an analyst at SG Securities.

Anyone taking bets on the consumer credit side improving?

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HTF can you just expect to write off 1.57bn?

That's not bad considering how they force credit down the mouths of even marginal borrowers.

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And barclaycard are already trying to recoup some loses....they along with many cards - have increased many charges - it costs more to use your card overseas, to make balance transfers etc, for going over your limit, late payment etc. So the majority of customers pay for the ones who don't pay their bills........

MBNA also sent me a letter yesterday to inform me of new increase in charges......

Look how may cards make a charge now for balance transfers...

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I was listening to the Today programme this morning, when the Barclays result was announced.

Apparently Barclays had started to reject a lot of mortgage business, since it considered a lot of the lending as too high risk, and as a result was willing to lose market share in that business area.

btp

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And barclaycard are already trying to recoup some loses....they along with many cards - have increased many charges - it costs more to use your card overseas, to make balance transfers etc, for going over your limit, late payment etc. So the majority of customers pay for the ones who don't pay their bills........

MBNA also sent me a letter yesterday to inform me of new increase in charges......

Look how may cards make a charge now for balance transfers...

Barclaycard reported a reduction in profitability. I find this significant - trouble always starts in the unsecured end and i think there has been a significant deterioration in the quality of their card debtor base. People who continue to service their debt may be asked to compensate a loss in profitability by higher interest rates and other charges per the above. If this is happening to Barclays it is happening to others and despite the fierce competition (which generally keeps rates low) we might see rates start to creep up.

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Cos it don't matter when it was created out of thin air anyway!

It does matter as the money will find a home somewhere, it doesnt dissapear into nothing it will flow into perhaps uneconomic activities and lead to excess supply and excess capacity. Just take a look at the huge reductions currently sweeping the high street that have invested on the back of all this extra money being splashed out by people which has been borrowed. It does have effects.

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This is a nugget though;

Anyone taking bets on the consumer credit side improving?

I've bought shares in a few debt management companies. So no!

I think they are the only industry whose future looks rosy. One of my mates came round last night to tell me he feels "much better" as he's just contacted Debt Free Direct as he can't make his credit card minimum repayment, and is behind on his mortgage payments.

I was genuinely shocked, as he *seemed* to be doing well. It makes me wonder how many closet bankrupts there are out there. The future is in the Insolvency Agreement industry IMHO.

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Barclays Bank has unveiled record full-year profits of £5.28bn ($9.2bn), buoyed by businesses outside of the UK.

Why are they closing my local branch then :angry: <_<

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I was listening to the Today programme this morning, when the Barclays result was announced.

Apparently Barclays had started to reject a lot of mortgage business, since it considered a lot of the lending as too high risk, and as a result was willing to lose market share in that business area.

btp

Credit crunch!

frugalista

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Apparently Barclays had started to reject a lot of mortgage business, since it considered a lot of the lending as too high risk, and as a result was willing to lose market share in that business area.

Interesting. Perhaps that should go in the "credit tightening" thread ?

If more of the mortgage lenders realise that the risk of lending in this market is too great, then house price falls are going to become a self-fulfilling prophecy...

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HTF can you just expect to write off 1.57bn?

You write it off against tax, you create the liquidity then dissolve it against tax on profits. Banking is an excellent business!

And barclaycard are already trying to recoup some loses....they along with many cards - have increased many charges - it costs more to use your card overseas, to make balance transfers etc, for going over your limit, late payment etc.

Indeed, bank charges are supposed to reflect costs and they're not meant to profit from them. Obviously it doesn't cost £30 to send out a letter indicating you're over-drawn, so how does this reflect costs? It turns out they consider all sorts of unrelated things as 'costs', such as writing off other peoples' debts, this is used to justify the charges.

Barclays Bank has unveiled record full-year profits of £5.28bn ($9.2bn), buoyed by businesses outside of the UK.

Why are they closing my local branch then :angry: <_<

Because you wont buy their mortgages, they've tried special offers, new year sales and everything!

Edited by BuyingBear

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HTF can you just expect to write off 1.57bn?

Because you have just made £4.55bn!

Although I believe a HPC is highly likely, I still have doubts, based on my belief the major banks and governments are trying to subjugate their workers with debt and fear. By inflating the cost of basic needs like housing and now energy( food will be next) but still providing easy credit they have allowed us to build the walls.

As jobs are lost and unemployment rises the underlying fear factor will rise. Vague threats from the latest Emmanuel Goldstein figure will no doubt increase. The terrified workers will shut-up and do more for less for fear of fear. Upshot; Fiddled inflation, less pay, more profit for the banks.

It's already started. How much will your pay rise be this year?

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  • 342 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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