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Lloyds Tsb's Profits Sink On Credit Writedowns

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http://www.telegraph.co.uk/money/main.jhtm...cnlloyds130.xml

Lloyds TSB, the biggest bank that depends almost entirely on U.K. lending, said first-half profit fell after bad loans and credit writedowns rose.

Net income was 576 million pounds ($1.1 billion) for the first six months of the year, down from 1.54 billion pounds, the bank said today. That missed the 881 million-pound average estimate of eight analysts surveyed by Bloomberg.

Despite the drop in profits, the bank increased the dividend by 2pc. Chief executive Eric Daniels wrote down £585m of credit-related assets in the first half.

Bad loans also rose as declining retail sales and home prices led economists at Fortis Bank NV to predict the U.K. economy will fall into recession this year.

Lloyds TSB, which gets about 60pc of its funding from more than 2,000 branches, was able to increase lending in the first half because it is less dependent on capital markets than peers.

The BoE seriously needs to step in and stop these idiots paying out dividends, want to borrow from the BoE NO DIVIDEND PAYOUT. Everyone is running out of cash and these idiots are throwing money at shareholders!!!!!

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http://business.timesonline.co.uk/tol/busi...icle4427372.ece

Lloyds TSB took a £585 million hit from market dislocation in the first half, forcing the high-street bank to a 19 per cent fall in pre-tax profit.

The bank today reported a pre-tax profit of £1.5 billion from its continuing businesses in the six months to June 30. Excluding the impact of turbulent financial markets, the business's profit was up 11 per cent to £2.1 billion. Lloyds TSB has increased the interim dividend by 2 per cent to 11.4p per share.

Most of the £585 million writedown came from the bank's insurance business, which saw its investment portfolio decline by £505 milion due to a downturn in fixed income and equity markets.

The bank maintained its capital ratios, as other banks struggled to boost theirs with rights issues. Lloyds has a core equity Tier 1 ratio - a measure of financial strength - of 6.2 per cent. Most banks are aiming at core ratios of between 6 per cent and 7 per cent.

Different spin at the times.

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  • 400 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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