Lloyds Banking Share Discussion Threads

[utyinv] 30/4/2020 12:45

dex,


Might. Is not a definite. If lending has been carried out with real tangible assets as security then impairment is negligible. If loans were given out without real guarantees then AH and his board need to be gone

[bookbroker] 30/4/2020 12:40

Problem is that this situation has caused a potential decline in the value of certain assets or security, whether it be a small business, a property or any item that has been been used as collateral. The impairment is likely where the bank has reason to believe that the value of a loan has been compromised, Barclays carried one y’day, and likely every bank will report similar stories. Nothing really to do with management, otherwise had they foreseen events they would have carried the impairment last year in preparation. If house prices were to decline in value no bank would lend money as a mortgage, were they to believe that. In fact no loan would be offered against a security if one took such a cautious view.

[dexdringle] 30/4/2020 12:39

The new 'provision' figure is for CURRENT (existing) lending that MIGHT now go bad in the future due to the economic downturn caused by the virus. It is not for loans not yet made.

[chavitravi2] 30/4/2020 12:35

Then there is four figure sums returned to accounts for holidays cancelled and holiday money set aside back in pocket. I think for the most folk will pay their Bill's as normal.

[utyinv] 30/4/2020 12:32

M4rtinu,

The language used as part of their statement implies its a charge for catering for future expectations.

Ref: ..... which was largely driven by a significantly increased impairment charge due to changes to the Group's economic outlook as a result of the coronavirus pandemic.

Due to changes to the Groups economic outlook.

Gov giving people incomes, free loans (100% guaranteed). So what’s past cannot surely have caused a loss. Unless they have lent money out without making sure they have assets to cover the liability.

If the latter is the case then surely it’s time for AH and his Board to go?

Basic banking philosophy, before you lend other people’s money ensure its a profitable proposition that wants the money and ensure before you lend you have real assets that can be used as a guarantee if the loan goes bad. No guarantee- no loan.

[portside1] 30/4/2020 12:30

Fair value 26p

[chavitravi2] 30/4/2020 12:29

Uty, very good point your making. I dont know about the rest of you but for the last 3 weeks I honestly dont think I have spent much more than a fiver a week. Nowt to spend on like you say.

[maxidi] 30/4/2020 12:28

Post office could be sold to Amazon.

[portside1] 30/4/2020 12:22

But just wait. Book. Is going to give us some good news

[portside1] 30/4/2020 12:22

In the real world if you owe money it has to be paid not many people want to go bankrupt ,If 99% of the public owe money they find a way of clearing the debt , if you can't pay we will take it away

[m4rtinu] 30/4/2020 12:19

Ity - see my post #9388. Though good question as to whether impairments for what's gone or to come. I would hav thought what's gone but open to correction.

[m4rtinu] 30/4/2020 12:19

Ity - see my post #9388. Though good question as to whether impairments for what's gone or to come. I would hav thought what's gone but open to correction.

[portside1] 30/4/2020 12:14

Book please enlighten us of what is good , because reading the up date says. Terrible unbelievable shocking

[portside1] 30/4/2020 12:13

The more you read into the up date the worse it gets

[portside1] 30/4/2020 12:11

More bad news to come from info from insider

[utyinv] 30/4/2020 12:06

BTW, been out most of the morning. Do we know what the impairment was down to?

Is it a provision for what might happen in the future or is it an impairment charge for was has been and gone, ie, bad loans, PPI etc?

[action] 30/4/2020 11:53

The whole banking sector is getting softer. Morning rally disappears.

[xxxxxy] 30/4/2020 11:48

Future.Virus has accelerated some changes that were coming anyway. Eg fewer branches needed, less ATM s. People have gone online and many will never go back to old ways.Obvious I know. But less overheads.

[utyinv] 30/4/2020 11:45

Portside,

What good would nationalising a bank do?

My experiences of Nationalised establishments is waste, inefficiency and procrastination. But if everyone on this bb is a shareholder ( and if they aren’t then they shouldn’t be on a Lloyds investor bb), what good would it be for the shareholders if the bank was nationalised?

Maybe I missed your point, but as investors it won’t help us if Gov decide to nationalise. I agree that management might need to change as incompetent Mgt and greedy management need to be got rid of ASAP.

[xxxxxy] 30/4/2020 11:44

Police State.