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interestrateripoff

A&l Profits @ £2m!

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Aug. 1 (Bloomberg) -- Alliance & Leicester Plc, the second- worst performing U.K. bank stock this year, posted a first-half loss because of credit writedowns and higher funding costs.

The net loss was 23.9 million pounds ($47.4 million), or 5.7 pence a share, compared with a profit of 183.6 million pounds, or 41.6 pence, a year earlier, the Leicester, England- based bank said today in a Regulatory News Service statement. That met the 23 million-pound loss estimated by four analysts surveyed by Bloomberg.

http://www.bloomberg.com/apps/news?pid=206...wM&refer=uk

Not yet looked at the actual results here http://www.alliance-leicester-group.co.uk/...f/FR3136083.pdf

Page 37 is the consolidated Income statement: 1.8mn net profit before tax. Interesting redundancy costs of 14mn, and earnings (loss) per share of (5.7p). Still interim dividend 18p

Page 24 arrears / LTV : Didn't realise they had stopped lending to BTL on greater than 85% LTV

Page 27 Treasury operations

:blink: Where the action is at!

Edited by Ash4781

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Im supprised they have scraped a profit.... but any number is possible in one financial year

Edited by moosetea

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http://www.telegraph.co.uk/money/main.jhtm...bcnround101.xml

Alliance & Leicester, the British bank that has agreed to be bought by Abbey-owner Santander, reported a 99pc slump in first-half profits to £2m pre-tax.

The high street lender also revealed Treasury losses of £272m at the core operating level, down from a £24m profit in the same period last year.

Chief executive David Bennett said: “Alliance & Leicester’s underlying business is in good shape ... but our financial results have been significantly affected by treasury losses in the first four months of the year and by high funding costs.”

He added that with significant external risks presented by deteriorating economic conditions and turbulence in financial markets, the proposal from Santander “provides greater stability and greater certainty in uncertain times”.

The bank said 154,000 new current accounts and 17,200 new business accounts had been opened in the six months to the end of June. Redundancy costs also jumped from £1m to £14m.

Nice bit of spin there by the CEO!!!!

I wonder if the price will change?

Edited by interestrateripoff

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ALL & LEICS (LSE:AL.L)

Last Trade: 340.75 p

Trade Time: 9:06AM

Change: 0.25 (0.07%)

When you consider the magnitude of the loss, 99%, and ponder the reaction on the stockmarket you begin to see a clearer picture of just how mad the entire economy has become. Prior to Gordon's miracle economy, a company reporting a 5% loss was set for a wipe-out in their share prices. 10% would be considred a serious matter and time for chnages at the top. 20% would send red lights flashing. But 99% and the share price rises? :blink:

Maybe they have said the same thing as HBOS-- it will be better in the months ahead.

Edited by Realistbear

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You just wonder how much creative accounting was needed to post a profit. Posting a profit - however small - conveniently placates the headline writers using the 'L' word. <_<

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I suppose Santander knew these figures if not they may well pull out of the takeover or renegotiate the terms. without doubt now we are going into a deep recession in the UK, house prices crashing faster than all envisaged, unemployment is steadily rising everyone I speak to now is fearful lots of firms are cutting back on staff overtime laying off or reducing hours, inflation is massively out of control. A&L have probably the largest BTL book out of all the non run state banks in the UK . They will be no hiding from the coming housing collapse as defaults rise rapidly if fact I am now asking are they out of there minds taking on such a risk or have they got a Nu Labour government get out of jail card if it all goes belly up.

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http://www.bloomberg.com/apps/news?pid=206...wM&refer=uk

Not yet looked at the actual results here http://www.alliance-leicester-group.co.uk/...f/FR3136083.pdf

Page 37 is the consolidated Income statement: 1.8mn net profit before tax. Interesting redundancy costs of 14mn, and earnings (loss) per share of (5.7p). Still interim dividend 18p

Page 24 arrears / LTV : Didn't realise they had stopped lending to BTL on greater than 85% LTV

Page 27 Treasury operations

:blink: Where the action is at!

Just had a quick look,

Page 13-15 is interesting, it shows the write offs od CDO's ABS's etc. They've written off 189m from reserves (this doesn't show in the profit figures) and 202m write offs that is in the profit figures.

They still have 3.5bn of ABS, valued at 94% of nominal value, and about 9bn of Floating Rate Notes valued at 98%

and 81m CDO's valued at 56% of nominal value.

Of the 40bn mortgage book, 160mn of mortgages are overdue by 10 million, which isn't that bad, but I don't know if they have "payment holidays" like northern Rock did which hides overdue mortgages from these figure.

4% of mortgages are >90 ltv (I don't know whether that's by value or quantity).

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ALL & LEICS (LSE:AL.L)

Last Trade: 340.75 p

Trade Time: 9:06AM

Change: 0.25 (0.07%)

When you consider the magnitude of the loss, 99%, and ponder the reaction on the stockmarket you begin to see a clearer picture of just how mad the entire economy has become. Prior to Gordon's miracle economy, a company reporting a 5% loss was set for a wipe-out in their share prices. 10% would be considred a serious matter and time for chnages at the top. 20% would send red lights flashing. But 99% and the share price rises? :blink:

Maybe they have said the same thing as HBOS-- it will be better in the months ahead.

Or perhaps the bad news has been factored in to the already hammered share price? I assume the market is digesting the news and initially thinks its better than expected (or being that its only 0.07% up, I reckon the market is currently happy that the recent hammering was just about right).

edit - amended the share move and some grammar. Sorry its not very nice post grammatically, just in a rush.

Edited by SpiceWorld!

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Or perhaps the bad news is also been factored in to the already hammered share price? I assume the market is digesting the news and initially think its better than expected (or being that its only 0.07% up, I reckon the market is currently happy that the recent hammering was just about right.

edit - amended the share move

That was my impression also, especially as they have Santander standing behind them now (for the moment anyway).

I was interested in all that sub prime writedown. I was pretty sure that they said a while back that they didn't even hokd as much as 200 million SP paper so wouldn't be affected. Can't find the article anywhere, but it stuck in my mind that the figures was below that. Have they bought more since then thinking it was a bargain? :lol:

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  • 395 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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