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Lloyds to stun City on profit

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6719040.ece

LLOYDS BANKING GROUP could shock the market with its first-half results by announcing that accounting trickery has helped it scrape into the black. Despite enormous bad-debt provisions – estimated at £13 billion – the bank is likely to post a modest headline profit for the first six months of the year
:jYou can have everything you wont in lfe, If you only help enough other people to get what they wont.:j
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Comments

  • Bloo_Loo
    Bloo_Loo Posts: 135 Forumite
    Mark to model....you know it makes cents.
  • halight
    halight Posts: 3,629 Forumite
    Part of the Furniture Combo Breaker
    As a Share holder im hope the price goes up a bit.:D
    :jYou can have everything you wont in lfe, If you only help enough other people to get what they wont.:j
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Wouldn't surprise me. Wasn't it Citibank who ignored their debts and announced a profit?
  • Bloo_Loo
    Bloo_Loo Posts: 135 Forumite
    Wouldn't surprise me. Wasn't it Citibank who ignored their debts and announced a profit?
    you mean, our trading profits trumps our balance sheet losses, which, thanks to mark to model of our financial assets, are in great shape.
  • michaels
    michaels Posts: 29,144 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    One analyst said: “There are a lot of big numbers involved here. When big numbers start moving around they can become very significant.”
    :rotfl:

    Wonder how big a bonus an analyst gets for making such insightful comments?!
    I think....
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    See my sig..............
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Broken_hearted
    Broken_hearted Posts: 9,553 Forumite
    Like all the other banks they are making profits by hurting the customers. In recent times we have seen credit limits cut and overdraghts withdrawn to claw money back.
    Barclaycard 3800

    Nothing to do but hibernate till spring






  • Doozergirl
    Doozergirl Posts: 34,078 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 19 July 2009 at 10:41AM
    Like all the other banks they are making profits by hurting the customers. In recent times we have seen credit limits cut and overdraghts withdrawn to claw money back.

    That's called reducing risk. It doesn't increase profit. Profit is made on the interest on lending amongst other things, hence they're out there desperate to lend, but to the people and businesses with the top credit scores.

    Article isn't really about that though.
    Everything that is supposed to be in heaven is already here on earth.
  • michaels
    michaels Posts: 29,144 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 19 July 2009 at 10:45AM
    Agreed - if you are a good risk they will happily be increasing your overdraft and credit card interest rates (whilst cutting savings rates) - the last thing they want would be for you to reduce your borrowings.

    Of course part of the reason for any profit turnaround will be because of the 'everything including the kitchen sink' shoved in to their last figures when they could blame HBOS (and by extension the Govt for 'forcing' them to take it over).

    It will be very interesting to see just how much operational profit Barclays and HSBC are making at the moment - at some point one of the big banks will stop finding write-offs to hide their gouging behind and the results will be extremely offensive - not that the politicians will dare do anything with the threat of offshoring the banks have basically indicated they hold all the cards....
    Doozergirl wrote: »
    That's called reducing risk. It doesn't increase profit.

    Profit is made on the interest on lending amongst other things, hence they're out there desperate to lend, but to the people and businesses with the top credit scores.
    I think....
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    Same as when the .com companies announced "profits" on a EBITDA!

    Then again IFRS formulation of accounting practices has been disastrous
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