Lloyds Banking Group says it is back in profit

IveSeenTheLight

from http://news.bbc.co.uk/2/hi/business/8645736.stm

Lloyds Banking Group says it is back in profit


The government still holds 41% of Lloyds Banking Group

Lloyds Banking Group has said it has returned to profit for the first three months of the year. The bank did not release a profit figure, but says it expects to continue to make profits throughout the rest of the year.
It says the rate of "impairments" - essentially bad debts - has improved and this should mean it makes more money than previously predicted.
Lloyds says customers remained keen to deposit money.
However, it says that the amount it is lending out is flat.
The bank, 41%-owned by the taxpayer, says that economic conditions are "more benign", asset prices are rising and funding costs are lower.
But it says it is keeping a close watch on economic conditions, particularly on its investments in the Irish Republic, which has a bigger budget deficit than Greece and has suffered a deep recession.

Blacklight

A bank back in profit? After writing off every single bit of bad debt while it had the chance?

Shocking.

IveSeenTheLight

Blacklight wrote: »

A bank back in profit? After writing off every single bit of bad debt while it had the chance?

Shocking.

The questions being asked is how will this affect the companies shares and indeed when the government will cash in on those shares.

Could it be that bailing out the bank turns out to be a profitable exercise for the government?

kabayiri

IveSeenTheLight wrote: »

The questions being asked is how will this affect the companies shares and indeed when the government will cash in on those shares.

Why should the state cash in?

Doesn't this prove that an 'arms length' stake held by the public can yield good profit each year for years to come?

The state took on board the risk, shouldn't we retain the benefit of the investment for years to come?

IveSeenTheLight

kabayiri wrote: »

Why should the state cash in?

Doesn't this prove that an 'arms length' stake held by the public can yield good profit each year for years to come?

The state took on board the risk, shouldn't we retain the benefit of the investment for years to come?

Certainly that would appear to be an option.
I'm not privvy to know if there were any clauses installed at the time of the bailout as to what level the shares would be sold off at.

Certainly got to be perceived as good that the government will get a return on the bail out investment wither by selling the shares or via an annual yield return

IveSeenTheLight

IveSeenTheLight wrote: »

The questions being asked is how will this affect the companies shares and indeed when the government will cash in on those shares.

It would seem that initially there was a spike on the share price this morning, up over 4%, however it has since dropped back down to only being up 0.6%