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Giving an estimate is not really going to change anything for CBG as nobody really has any clue at present what the final liability is going to be
For CBG the figure is somewhere between zero and £1 billion, and so what good will it do for them to give a best estimate when the higher figure could mean a highly dilutive rights issue for CBG at best, and receivership and liquidation at worst ?
Order on at 340. Hopeful divi returns soon. Great bargain long haul here. GLA
They have not taken it all the way to £4 to attract weak sellers.
Maybe saving that for Friday.
This, from The Times…
“There remains significant uncertainty as to the extent of any misconduct and customer loss, if any, the nature of any remediation action, if required, and its timing,” Lloyds said of its motor finance charge. “Hence the impact could materially differ from the provision, both higher or lower.”
Presumably, they’ve taken a “most likely outcome” case based on what they know from engagement with the regulator and other affected organisations.
You would expect the financial services organisations to be working together on an “industry position” to at last some extent.
If they make a provision based on "best case" I would argue they are in breach with required accounting principles.
It's all looking good . Lloyds probably had a massive legal team looking into this compared to cbg.
If the ratio on payouts between Lloyds and cbg were correct from analysts then this is amazing news.
Note 38 clearly states that there is ‘significant uncertainty as to the extent of misconduct and customer loss’.
They’ve made the provision and then they’ve added all of these extras which makes the provision worthless as typically it should only go through when you can reliably estimate the amount. In this case they’ve gone and qualified their statement. Hence I believe this to be a best case.
But DYOR
Looks like market waking up to the fact that this has been overdone on the drop -see you at +£4
Looking at the Lloyds results, I’m inclined to agree with @liam1om - their forwards guidance doesn’t include any indication of the need for further provisioning.
Yeah that was good news Today
Probably be retesting that 350s area in due course as confidence ticks up
I think the opposite. That could be their mid case or worst case. If you set aside a sum, you usually set aside enough to cover the worst case scenario.
CBG have already mentioned that they will give a special dividend if the amount is less than expected. It seems to me, they have a hunch it could be less than expected.
Anyway, its all speculation until September.
I would be very careful of that £450m number. It’s only what you can reliably estimate at the time and provisions need to be specific so I’d say that’s probably a ‘best case’ number.
Replace advance with advfn, typo with autocorrect
Replace advance with advance, typo with autocorrect!
Looks like only 10-30m being quoted on advance if you proportion it out. On that basis this sell off was well overdone and is ripe for a huge move up
When LLoyds can make an estimate, CBG should be able to. we may see some numbers along with Half year results - may be less than £100mn.
Indeed it looks like a huge blue day ahead here after Lloyds news
Good luck if you can buy
Could see a serious shift here today
Https://www.ft.com/content/2bcf29d6-2f47-4bd0-b7fe-58b4b7ee43bb
On lloy chat they saying only 450m provision for FCA investigation. Not checked results my self.
Seems small for Lloyds
Is it me or is the volume going down each day.
With leverage ratio of 12.7% roughly 1.3 billion as of dec 31 and profits of around 150m+ for 2024 that got to be at least 500m spare cash to stay above regulated requirements. If I have done my math correctly.
Still plenty of value to be had and some nice big trades gone through, ignore the noise
Fre1, directors won't be able to buy as it's too close to the interim results...
Another good trade I reckon WG see my earlier post