Hi Kelly, not all impaired debt is provisioned, i don't know how much of the Irish debt was provisioned, and cannot see the impact on the BS, but the result of the sale is that the % of impaired debt that is provisioned within the bank falls by 2.2% to 48.3% Anyway, results day tomorrow,no doubt we have more PPI -AHO originally said £3bln so how is he still in a job? - i have a growing nervous feeling - hope it's nothing more than an upset tum
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
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