It is no surprise that impairments are at a record low. Lloyds must have lost billions selling off it bad debts for halve or less of its expected worth.
Hardly anything to cheer about. Just means that Lloyds have given up any hope of ever themselves obtaining their money back on that loan, and have accepted the losses, although, presumably the 'suckers' who buy up this debt, must consider their is hope, maybe they have connections with Blue Circle and Hunter wellingtons.
So I guess now we are left with the debts/loans/mortgages etc. that have some hope of being paid back, well, at least until the interest rates meaningfully rise, then back to Lloyds grand sale of buy our debt at 50% or less once more.
Lets hope also, that the wording on all the remaining loans is not too aggressive, that the seller of such never pressured the taker of such in any way, else the borrower will have grounds to not only never pay it back, but to sue us as well.
Still, who cares? The 0.6p div when its reinstated will make everything good again.........won't it?
Mind, by then, Lloyds share price will be so low that even that miserable amount will seem a good yield.
The whole markets are on the slide, the Scottish vote will be used, albeit briefly to add to the Autumn of angst, and future HMG sells off will be neigh impossible as the whole markets slide to breath taking lows.
Still, some will still be glass full, or overflowing with quips, such as 'fill your boots' or 'good time to top up', or' I'm averaging down to W.L predicted 41p'.
Now there was a lady who knew a thing or too and seen all this coming whilst others imagined a Pimms at the pound party around now. Lol
Virgin Money offers £3k cashback on Help to Buy mortgages - but only for new builds worth up to £250,000: Virgin Money has launched a £3,000 ‘stamp duty buster’ for buyers using the government’s Help to Buy equity loan scheme.
Banks’ charges for writing down toxic loans have fallen to their lowest level in recent history as the British economy strengthens and lenders enforce stricter borrowing standards.
The UK’s seven biggest banks reported a substantial drop in impairment charges relating to bad loans in the first half of the year, with just 0.255pc of lending being written off compared to 0.67pc last year, according to Standard & Poor’s (S&P), the credit ratings agency.
However, the decline – the lowest level recorded in 25 years of data – failed to prevent profits falling at the UK’s major banks, due to a series of fines and lower trading incomes.
After the financial crisis struck in 2008, banks faced historically-high impairment charges on their loans as the creditworthiness of borrowers faltered. In 2009, they reached their highest level for 17 years, dragging down profits, and since then they have been at levels not seen since the early 1990s.
In 2009, impairment charges reached 1.54pc of loans, more than double the average of 0.72pc over the last 25 years.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.