RE: The letter of ultimatum6 May 2020 01:21
My view, for what it's worth
Mid March HMG quite rightly threw everything it could at Covid-19 - lockdown, shielding, social distancing, nightingales, financial measures inc PRA instructions to banks etc -
If they had not of done, the consequences for the UK could have been truly catastrophic,
Less than 2 months later, because of the measures previously taken, HMG is now talking about staged lifting of the lockdown, is standing down the London nightingale hospital and is looking at reducing those needed to be on furlough
Regards Lloy part in all this - we've all seen the PRA communication - a blunt instrument to cover the whole of the UK banking sector - non of the banks had any option but to comply - it was also 'the right thing to do at that time' - but time move on
We've seen CBILS take up has not been as large as expected and following HMG guidance Lloy has been prudent with its lending - Just as the nightingales will hopefully be stood down, so hopefully the impact on the UK's banking sector will not be as bad as initially imagined
Q1 results, Lloy sets aside a large portion of profits for potential future CBILS losses, but still manages to declare sufficient profit to cover the cost of the planned 1st quarter divi, IMO a pattern likely to be repeated at Q2 & Q3
As things stand at the moment the PRA's blunt instrument expires 31st Dec 2020 - after which hopefully Lloy will be once again free to make it's own decisions regards payouts to it's shareholders
While I scrape by till the 1st Jan 2021 I take a small credit knowing that my saving are helping to save our workers, our economy and our country
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