Lloyds Banking Share Discussion Threads

[mikemichael2] 22/9/2020 12:08

The banks did mis sell, my wife worked for Lloyds back in the PPI days and was under pressure to sell it, EVEN WHEN SHE TOLD THE BOSS THEY DON'T NEED IT.

[loganair] 22/9/2020 11:50

Lloyds have already paid out c£10bln in PPI payments and will now be made by the government to pay out many more £ billions due to so call miss-selling of ISA's.

The banks never miss sold anything, just that the people who bought these products where ignorant and did not inform themselves on what they were buying - this is not the fault of the banks.


All this is about, is the government wanting the banks to give money to the spenders to spend on consuming instead of giving ot as dividends to investors to invest.

[xxxxxy] 22/9/2020 11:47

Boris = Nightmare.... Jim Jam22 Sep 2020 7:45AMDoubling every seven days, huh? Then by Christmas day, all 67 million of us will be a "case".It's as much an argument for not going into lockdown. I would happily get this bug if it meant I never had to listen to these two miserable sods again.120LikeReplyShane Larkin22 Sep 2020 7:59AMThey cannot back down as it would show that they have pointlessly destroyed jobs, the economy and brought misery to millions.My job has already gone. Unfortunately many of you will be joining me on the dole queue.104LikeReplyj l johnson22 Sep 2020 8:01AM@Shane LarkinI'm very sorry. It's a true disgrace. The lack of proportionality in the way this is being handled is genuinely terrifying. ... Daily Telegraph

[dexdringle] 22/9/2020 11:45

If 5% of the loan book is not recoverable that would wipe out most of the capital. By its very nature a bank is highly leveraged lending out mostly borrowed money.

This is usually positive in that they can earn a good margin on a bigger number but the margins are being hammered now so they can't even make hay while the sun is shining let alone worrying about when it rains..

[dope007] 22/9/2020 11:40

LLOY have also put in nearly £4 billion of provisions in H1 which may well have been over the top for H1 at least

[dexdringle] 22/9/2020 11:37

Lloyds has a loan book of around £750bn and a market cap of just £15bn. It has capital of around £50bn, so market cap is around just 1/3rd of capital - but the market is pricing it such that a good portion of that capital will be eaten away with a rush of bad debts at a faster rate than profits can be made to plug the hole.

Banks have become a government utility but still owned by the poor old shareholders who are now bottom of the pile in order of priority. Any excuse for the banks to be forced to 'pay out'. Now that the PPI gravy train is coming to an end banks are being made to pay out on all sorts of stupid things - including refunding people for 'push payment' fraud where some numpty is conned into sending money to a fraudster and the bank is expected to pick up the tab. This is millions, and millions, and whatever warnings the banks put into online banking are not considered good enough by the regulator who just wants banks to reimburse everyone regardless. It is utter stupidity and the banks need to say "enough is enough".

I think the share price is a forward indicator of what is to come economically. Time to batten down the hatches I think......

[utrickytrees] 22/9/2020 11:02

Bedhead, the upmarket gentleman's creative haircare company launched a styling product which gently bleaches to give that 'Boris just out of bed look', early indications are that it will be their most successful product in their portfolio.

[xxxxxy] 22/9/2020 10:57

Brexit Party.The Honest PartyParty of The People

[xxxxxy] 22/9/2020 10:56

Nigel Farage@Nigel_Farage·2hThe government is increasingly behaving like an elected dictatorship

[minerve 2] 22/9/2020 10:45

Plenty of morons on ADVFN.

[minerve 2] 22/9/2020 10:44

I have a new name for Doris:

Mr Moronvator - he motivates the morons.

LOL!

[minerve 2] 22/9/2020 10:43

Vote for a clown and get a circus!


What more do you want?

ROFLMAO!

[loganair] 22/9/2020 10:39

The thing that it causing the greatest damage to the profitable banks in Europe is how governments are forcing these banks to take over the weaker loss making banks instead of just letting these banks go bust and is what is happening with the Italian banks at the moment.


Prime example in the UK is Lloyds being forced by the UK government to take over HBOS, Lloyds hasn't been the same ever since.

All this does is to make the stronger banks weaker and less profitable.

[loganair] 22/9/2020 10:26

When I opened up my bank account in Spain the only charge I was charged was because I was a foreigner. Basically in Spain, even with them charging for account, most of them got into trouble hand have needed to be taken over by either Santander or BBVA.


When I went to work in New Zealand, i took a letter from Lloyds bank asking the National Bank (which was owned by Lloyds) who charged a fee for their bank accounts to treat me as though I was a UK customer and therefore I was not charged for my National Bank, bank account.

[chavitravi2] 22/9/2020 10:18

Loganair, many years ago when I was going to open an account in Spain there was a monthly charge for the account and when I said my account in UK was free she said here it was only if you had quite a bit of money in it but the interest on the money wasnt anything to shout about. The fact is we seem to have been spoilt here in the UK.

[loganair] 22/9/2020 10:17

If I'm charged a fee for my banking services, then I want them to pay me a decent rate of return for the money I have with them.

As I mentioned on the IAG thread, every thing goes to pot once an industry become "now everyone can do it."


Up until the 1990's banks only made a loss on c30% of their customers, today they make a loss on c80% of their customers - as now days too many of the banks customers do not have two pennies to rub together as loss making customers for them.

For a bank to be profitable it needs customers who are able to keep an average of at least £1,000 or £2,000 in their account at any one time.

[dexdringle] 22/9/2020 10:12

Mrs Dringle recently invested in NS&I Income Bonds which were paying 1.15% but this is to reduce to 0.01% from November.

NS&I tempted everyone with an attractive rate then, once the money is in, effectively stop paying interest. I think, like with the Covid-19 measures, it is more a sign of a complete lack of strategy than it is of malice.


XXXXXXX Posting on Twitter 21st September 2020, Martin Lewis wrote: "NEWS: NS&I announces unprecedentedly large rate cuts on 24 Nov. Currently best buy across the board.

"Income Bonds drop from 1.15% to 0.01%

"Direct Saver drop from 1% to 0.15%

"Investment account from 0.8 % to 0.01 ISA & Junior ISA similar."

He called it "a devastating blow for savers."XXXXXXX

[chavitravi2] 22/9/2020 10:11

DeX, you highlight my point. I think it maybe the banks will put their heads together and all at the same time agree to charge a nominal fee for the services of banking and paying your Bill's.

[loganair] 22/9/2020 10:08

Why should I pay to have a bank account, when the said bank has my money in it which they are not paying any interest for.

The way banking works is, the bank pays me interest for my savings, then it lends it out to others at a higher rate of interest.

[chavitravi2] 22/9/2020 10:06

I dont see neg rates. With the rate as it is it wont make much difference going the same neg, but it will send a very bad signal. For that reason I dont think it will happen.

[dexdringle] 22/9/2020 10:05

Banks should charge a monthly fee. What other commercial services are available for free ?

If I said to you you can either have a bank account and all the associated functionality for £10 a month OR have your salary paid to you in cash and try to settle everything (loan repayments, utility bills, all purchases) as cash I bet you'd see £10 a month as a bargain.

Unfortunately, banks have competed against themselves on charges in a race to the bottom to a point where they are now all in a corner and none of them can charge properly. And if they decide to move as one to charge then this will be seem as some kind of cartel.

[loganair] 22/9/2020 10:00

What the central banks do not seems to realise is a 'Saver' will always save their money while a spender will always spend and be in debt.

Therefore there is nothing the central bankers can do to entice Savers to spend their savings while the spenders are now in so much debt that they are no longer in a position to take on any more debt to continue their spending.