You are right that the only real impact on profit is stopping the annual loss of £130m. I was talking about the impact on the balance sheet and was assuming the £2.3bn "considered impaired" would have been provided for. Bit of an error by AHO if they were not?
In my day all charges ie interest and commission were transferred half yearly into anRDD account and therefore did not contribute to profits.....this of course was for doubtful lending where security was light RDD stood for Reaserve for Doubtful Debts,and covered all lending spectrums
I think you are wrong in assuming all the impaired loans are provisioned, they are not. Beebong covers it better than me - below - and i understand the only real impact on profit is to stop the annual loss of 130m from the portfolio. hope this helps
Just wondering why it appears that people on the board seem to prefer a dividend rather than a share buy back, if the share price has more scope to increase a lot higher in the long term then is the dividend option preferred by the 'dippers' ?
Based on what I've read on this subject this should only apply where the PRA deem that the CT1R is too low eg:- Barclays at around 11% hence they could impose an additional capital buffer until their ratio improves. However as Lloyds CT1R is around 13.6% and could be north of 14% by Jan 2016 this shouldn't in theory impact Lloyds and therefore hopefully shouldn't affect the Divis or Buy Backs IMHO
No mate it was not Pendragon They would have been branded as Evans Halshaw I think it was a company set up by two chaps who RBS lent the money to Then when things did not go as planned they pulled the plug and Dixons disappeared But I think RBS were behind the scenes But you could not have a bank having one of its businesses go pop
LONDON (Alliance News) - Lloyds Banking Group PLC Thursday said it has agreed to sell a portfolio of Irish commercial loans to a trio of investors for about GBP827 million, with the group's remaining exposure to commercial assets in Ireland to be minimal following the deal.
The consortium of investors buying the loans consists of US-based alternative investment manager CarVal Investors, Wall Street giant Goldman Sachs, and Bank of Ireland.
"The sale is in line with the group's strategy of deleveraging its balance sheet by reducing run off assets and creating a low-risk, UK-focused bank," Lloyds said in a statement.
Lloyds said it's selling GBP2.6 billion in gross assets, with GBP2.3 billion of that amount considered to be impaired. In 2014, the loans generated a GBP130 million pretax loss.
Bank of Ireland said it will acquire a portfolio of about EUR200 million of performing commercial loans made to about 650 customers under the deal, with entities affiliated with CarVal and Goldman to acquire the rest of the portfolio.
The sale proceeds will boost Lloyds' capital levels by about seven basis points, according to the FTSE 100 bank, with the proceeds to be used for general corporate purposes.
At the end of June, the group's impaired loans as a percentage of closing advances were 2.7%, and provisions as a percentage of impaired loans were 55.1%.
"On a pro-forma basis, the impact of this sale would be to reduce the impaired loans as a percentage of closing advances to 2.2% and reduce provisions as a percentage of impaired loans to 48.3%," Lloyds said.
Mark Cunningham, director of Bank of Ireland Business Banking said: "Bank of Ireland is pleased to have been able to avail of this opportunity to demonstrate our ongoing focus on further growing and developing our strong position in serving the business banking sector in Ireland."
Lloyds expects the deal to complete in the fourth quarter.
Lloyds shares were up 0.4% at 85.90 pence on Thursday morning in London. Bank of Ireland shares were trading unchanged in London at EUR0.375.
By Samuel Agini; firstname.lastname@example.org; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
See RNS Used to be part of the Dixons car empire Run by Bazza Whittles a very experienced operator in the repair world Dixons were bought out by RBS, strange move Bazza stepped in and managed to buy the repair business Then RBS realised they had made an error of judgement in buying Dixons abd decided to sell up
They sold it to someone therir names evade me at the moment and within 12 months the Dixon group was gone
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