From 1h agoKey events15m agoLloyds Banking Group profits hit by gloom over UK economy46m agoCity minister: ‘It is right that the NatWest CEO has resigned’1h agoNigel Farage calls for more leaders to go after NatWest boss resignsFilters BETAKey events (3)NatWest Group (5)Alison Rose (5)Coutts (4)Nigel Farage (4)BBC News (3)15m ago03.08 EDTLloyds Banking Group profits hit by gloom over UK economyKalyeena Makortoff
A sign outside a Lloyds Bank in New Street, Birmingham. Photograph: Joe Giddens/PA
This is why bank shares have dragged down the FTSE 100 in early trades this morning: a slump in profits at the UK’s biggest high street bank.
Profits for Lloyds Banking Group tumbled 29% in the three months to June, as it prepared for an increase in customers falling behind on costly loan and mortgage payments because of rising interest rates.
Lloyds, which is UK’s largest mortgage lender and owns Halifax, said pre-tax profits fell to £1.6bn in the second quarter. That marked a drop from £2.3bn a year earlier, and was slightly slower than average analyst estimates for £1.7bn.
While the bank’s net interest margin – which accounts for the difference between what is charged for loans and mortgages and what is paid out for savers – was broadly flat at £3.5bn, the bank’s profits were hit by its predictions for the British economy.
The lender said that although its own economists were expecting “stronger” GDP growth compared with six months ago, that was offset by fears that higher interest rates would lead to “increased losses”. It put aside £419m to cushion the blow of any potential defaults, where mortgage or loan borrowers fall behind, or potentially default, on their payments.
19m ago03.04 EDT
NatWest Group shares have fallen by 2.2% in the opening minutes of trading on the FTSE 100.
However, it appears that it may be economics driving the move rather than the resignation of Alison Rose: the biggest faller on the FTSE 100 is rival Lloyds Banking Group, which is down 2.9%.
25m ago02.59 EDT
Nigel Farage has called for legislation to prevent banks considering political views when making decisions on who can hold an account – while also taking a swipe at the pro-LGBT+ marketing campaigns Coutts has previously run.
Speaking this morning to his employer, GB News, Farage said:
The government, being a 36% shareholder in this bank, along with other major investors, needs to appoint a new temporary board to take control of this bank, and then what we need to do is, starting very early in the autumn, is to put in place legislation that says banks cannot and must not discriminate against customers because they support Brexit or they don’t think putting rainbow flags on the front of the bank is right.
We need to address the money laundering regulations that have effectively become the sledgehammer to miss the nut. It’s the innocent that are getting hurt, whilst the big-time crooks still get away with it.
Farage also declined to attack the BBC…
2023-07-26 02:08:57
Post from www.theguardian.com
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