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’Compare and contrast, RBS and Lloyds
Where Lloyds goes, RBS follows.
Not in terms of a socking great provision for PPI mis-selling (RBS says it can’t estimate the cost, but reckons it could be significant) but those increased Irish impairment charges.
Antonio Horta-Orsorio clears the deck at Lloyds
RTRS-LLOYDS CEO SAYS “I REALLY DO NOT SEE ANY KITCHEN SINKING IN THESE RESULTS”
Well, Antonio Horta-Orsorio might see it that way, but it’s very unlikely the City will agree.
The size of the provision Lloyds has taken cover potential payouts to thousands of purchasers of PPI loan insurance (£3.2bn) is way,
Snap news
Breaking pre-market news on Thursday,
- Lloyds Banking Group reports loss after taking £3.2bn PPI provision; impairment charge £500m higher than expected due to Ireland– statement.
- Société Générale posts lower than expected Q1 results due to own debt market down/Arab spring — statement.
Why Lloyds has lashed out at the ICB
A handy table via Morgan Stanley. It shows the impact on Lloyd Banking Group if it’s forced by the UK government to sell another 400 branches. No wonder António Horta-Osório is furious.
Bank of Ireland – it lives!
The price action early on Friday morning:
No, that’s not an April fool.
Shares in Bank of Ireland really are trading higher.
And that’s because traders and analysts think there’s still an equity investment case and a chance government ownership can be kept below 50 per cent (if subordinated debt holders to play ball).
Snap news
Breaking pre-market news on Wednesday,
- Rolls-Royce and Daimler launch joint bid for Tognum; offer pitched at €24 a share — statement.
- Lloyds Banking Group announces management shake-up — statement.
Snap news
Breaking pre-market news on Friday,
- Lloyds posts pre-tax profit of £2.21bn, Irish impairments rise — statement.
- IAG pre-tax profit for 2010 of €84m — statement and statement.
- Ryanair has ‘very serious questions’ over Aer Lingus provision — statement.
A sudden rise in Britain’s debt-to-GDP figures? Blame the banks
Well, this took a while.
From the Office for National Statistics and with a H/T to Ian Fraser:
The Office for National Statistics and HM Treasury jointly publishes monthly estimates of the Public Sector Finances (PSF).
Lloyds gets the red pen treatment
First the good news. House broker UBS remains extremely on bullish Lloyds Banking Group.
We remain convinced that the group can, by 2013, deliver a mid- to high-teens RoE on a capital base and net asset value considerably higher than the current level.
UK mortgages, and the bank lending blame game
Is Bob Diamond — currently under the kosh at the UK Treasury Select Committee at pixel time — getting the wrong end of the stick? At least in terms of Barclays’ lending habits?
Or, more importantly,
Does RBS need to take an Irish hit?
Will RBS be the next bank to increase bad loan provisions for Ireland?
That’s the question traders are asking on Thursday morning after KBC followed Lloyds Banking Group and warned of a deterioration in its Irish loan book (alongside irregularities in a British leasing subsidiary).
The luck of Lloyds
Not good news for Lloyds Banking Group on Friday.
A regulatory filing from the bank reveals that its particularly nasty case of ‘Irish exposure’ syndrome could be worsening.
From the RNS:
Since the release of its Interim Management Statement on 2 November 2010,
HM Banks ad infinitum
Calling experts in placing shares — a lot of shares:
… Your Majesty needs you.
That’s a chart from the National Audit Office’s just-released report on British taxpayer exposure to UK banks rescued during the crisis.
Decoding the Lloyds IMS (updated)
There’s not much granular detail in Tuesday’s trading statement from Lloyds Banking Group, the part-nationalised British bank.
Hard numbers are few and far between (there’s just nine excluding repetitions),
Snap news
Breaking pre-market news on Tuesday,
- BP returns to profit; to review dividend policy alongside FY results in early 2011 — statement and results.
- BG announces 2.7bn barrel upgrade for fields in the Santos basin and results — statement and statement.
The legacy of fat bloke finance
This is London’s Centre Point tower, a (cough) architectural icon from the 1960s that sits at one end of Oxford Street.
Its owner is Targetfollow, a Norwich-based company that Lloyds Banking Group could force into administration as soon as Friday.
Further reading (for the IBC)
More bedtime reading for the UK’s Independent Banking Commission; this time from research house Autonomous.
The report was referenced in Tuesday’s Wall Street Journal as a curtain raiser to the publication on Friday of the IBC’s ‘Issues Paper’.
And it’s goodbye from Eric
Hankies at the ready.
Eric Daniels is leaving Lloyds. As the bank said in a release on Monday:
Eric Daniels, Group Chief Executive of Lloyds Banking Group, has informed the Board of his intention to retire in a year’s time.
Homework for the Independent Banking Commission
Here’s some reading for the UK’s Independent Banking Commission, ahead of its first public appearance on Friday.
It’s an in-depth report from JP Morgan on the profitability of Lloyds Banking Group’s retail operations.
Snap news
Breaking pre-market news on Wednesday,
- Lloyds posts £1.6bn profit in first half, impairments at £6.55bn – statement.
- RBS sells UK branches to Santander for £1.65bn — statement and statement.
Zen and the art of flogging UK banks
We live in a new era of Austerity Britain.
One must make cutbacks and maximise value where one can.
So, then. Not just when — but how– should the UK government sell off its stakes in Lloyds and RBS,
Snap news
Breaking pre-market news on Monday,
- Lloyds sells HBOS integrated finance division to Coller Capital – statement.
- BP says Gulf of Mexico clean up costs now $3.12bn – statement.
- Travis Perkins agrees 435.8p/£560m offer for BSS Group – statement.
Bailed-out bank stakes cost UK £3.2bn a year, JP Morgan says
Worried about Britain’s public debt figures? Blame the bailed-out banks.
JP Morgan has published a 48-page note on the UK government’s stakes in some rescued financials; Royal Bank of Scotland and Lloyds Banking Group to be specific.