Or so say RBS analysts, in their note on the Crock’s loss-cutting results out on Wednesday (emphasis ours):
No new information that would move the cash bond prices here which in our view is good news. Asset Co. is operating as a mortgage company instead of a bank so only £200m of capital required to operate. Trends in the reported numbers mimick what we are seeing elsewhere in the UK banking industry.
Statutory loss before tax reduced to £257.5m in 2009, compared with a loss of £1,355.9m in 2008, despite incurring a loan loss impairment charge of £1,044.8m (2008 £894.4m). Improved net interest income and a reduced loan impairment charge were the main drivers behind the Company recording a statutory profit of £466.7m in the 2H09, compared to a loss of £724.2 million in the 1H09…The Company’s mortgage arrears rate rose in the 1H09 before stabilising in the final quarter of the year. Loan loss impairment charges are expected to remain high during 2010, relative to historic norms, but below the level recorded in 2009.
Break out the champagne.
Like, Barclays, Lloyds Bank Group and RBS, the Crock also thinks bad debt charges have peaked. But as we’ve already noted – it’s not clear how quickly the peak will fade away.
Bit of a Rock of Sisyphus to push up the hill yet, then. (Sorry, I’ll get my coat).
Related links:
Deconstructing the ‘buy’ case on UK banks – FT Alphaville
The FSA says now is not the time for (bank) bondage – FT Alphaville
Northern Rock losses halve to £139m – FT