(Bloomberg Opinion) -- The U.K.’s biggest banks have come a long way since the financial crisis, when taxpayers had to rescue them to the tune of tens of billions of pounds. They’re certainly stronger, with comfortable capital buffers, as they head into what could be the worst recession in three centuries.But with the future of the economic rebound still far from certain, they’re having to set aside huge sums of cash to cover the potential loan losses. With rock-bottom interest rates squeezing profit margins, and the terms of Brexit still not finalized, it’s little wonder investors are ...
NatWest Group plunged into the red in the first half of the year after setting aside a fresh 2.1 billion pound ($2.76 billion) provision against a potential surge in loan losses due to the COVID-19 pandemic. NatWest posted a 770 million pound pretax loss for the first half, compared to a 2.7 billion pound profit the previous year. The newly-rebranded bank - which ditched its Royal Bank of Scotland group name earlier this month - follows rivals Barclays and Lloyds this week in setting aside hefty provisions for potential loan losses.
Investment banks in London are trying to tempt more staff into the office, laying on free food, Friday night drinks and other perks to lure bankers back where they can pass skills to others -- and compliance departments can keep a closer eye on them. Mass remote-working has been largely successful for many financial firms, improving communications and sparing staff from long commutes during a near-global coronavirus lockdown. In public, they tend to cite the importance of building teams, boosting morale and mentoring junior staff.
(Bloomberg) -- Lloyds Banking Group Plc’s profit was wiped out by a fresh 2.4 billion-pound ($3.1 billion) charge for bad loans in the second quarter as the lender braces for more pain from the coronavirus pandemic.Britain’s biggest mortgage lender said Thursday it now expects to set aside between 4.5 and 5.5 billion pounds this year to cover the economic fallout from months of lockdown and the end of government support programs.“The outlook has clearly become more challenging since our first quarter results, with the economic impact of lockdown much larger than expected at that time,” said ...
European shares opened lower on Thursday as a clutch of dismal earnings reports took the shine off the U.S. Federal Reserve's vow to keep stimulus taps open to shore up a coronavirus-ravaged economy. Britain's Lloyds Banking Group swung to a rare pretax loss in the first half of 2020, while Volkswagen unveiled a first-half operating loss and slashed its dividend. Anheuser-Busch InBev jumped 9.4%, providing the biggest boost to the STOXX 600 after saying it was encouraged by a global beer sales recovery in June.
Lloyds Banking Group swung to a rare pretax loss in the first half of 2020, after setting aside a bigger than expected 2.4 billion pounds ($3.1 billion) second-quarter provision to cover a potential hike in bad loans due to the coronavirus. The United Kingdom's biggest domestic bank, seen as a bellwether for the wider economy, said it had adopted a gloomier outlook and estimated the impact of lockdown measures was "much larger" than previously forecast. It said Britain's GDP could shrink by 17.2% over the year, compared with a 7.8% fall previously modelled as the worst-possible outcome at ...
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining29 July 2020 Vast Resources plc (“Vast” or the “Company”)Atlas Special Opportunities LLC Interest Payment ElectionVast Resources plc, the AIM-listed mining company, announces that the Company has elected to pay the interest of $29,591.45 due on 29 July 2020 on the $7,101,947 Bond issued to Atlas announced on 31 January 2020 by the issue of 10,936,641 shares (the ‘Issue Shares’) at an issue price of 0.20871 pence per share. Under the terms of the Atlas Bond Issuance Deed the Company is entitled to elect to make payment of ...
(Bloomberg) -- The European Central Bank extended a de facto ban on banks returning capital to shareholders and urged them to show restraint on bonuses after the coronavirus outbreak, dealing a blow to lenders who lobbied for business as usual.The supervisor asked that banks not pay dividends or buy back shares at least until January, three months longer than initially indicated, and “to be extremely moderate with regard to variable remuneration,” according to a statement Tuesday. The ECB said it will review its stance again in the fourth quarter.Separately, the Bank of England said it will ...
(Bloomberg) -- Lloyds Banking Group Plc’s effort to improve staff diversity has been called “credit positive” by Moody’s Investors Service, in a sign of the increasing importance placed on ethnic diversity in the workplace.Measures outlined in the U.K bank’s “Race Action’’ plan, which includes promoting more black employees to senior roles and publishing an ethnicity pay gap report this year, are “credit positive because they will improve staff diversity at all levels and reduce Lloyds’ exposure to social risk,” according to a Moody’s report published July 23.The killing of George Floyd by ...
In the northern English seaside resort of Blackpool, the family-run Elgin Hotel is preparing to reopen in August after four months' enforced closure. To help cover lost revenue, the hotel tried to secure an 800,000 pound ($1.02 million) loan under the UK's taxpayer-backed Coronavirus Business Interruption Loan Scheme (CBILS).
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining24 July 2020 Vast Resources plc (“Vast” or the “Company”)Baita Plai Polymetallic Mine UpdateVast Resources plc, the AIM-listed mining company, is pleased to update the market on progress at its Baita Plai Polymetallic Mine in Romania “Baita Plai”.Final Shipping UpdateFollowing the previous announcement regarding shipping updates made on 13th July 2020, the Company can confirm that the remaining containers of equipment, referred to in previous annoucements, have all arrived on site at Baita Plai. Metallurgical Test Work ...
Brexit will make markets less efficient but it won't be disastrous for Britain's economy, an appointee to the Bank of England's Financial Policy Committee said on Monday. Britain left the European Union in January, with transition arrangements that afford continued full access to bloc ending in December. "It will cause fragmentation, it will cause inefficiency, there will be problems with regulation, but it's not going to be disastrous... for the economy," Jonathan Hall, told a confirmation hearing in parliament's Treasury Select Committee.
