"Ending free bank accounts 'fair'"

tom188

Eck wrote:

Quite the contrary, i don't think it was an ill considered or daft comment, i for one, and probably many more thousands like me, feel that we do get well and truely ripped off in this country, how else do you explain a banks profits of more than £7 billion???????

High levels of corporate and M&A activity. Perhaps you should read as far as the business pages in your copy of the daily mail. Then you may have something informative to say.

tom188

Al_Mac wrote:

If you take a look at Barclays results, I don't know for sure as I haven't looked at this years, but it shows which areas pull in the most dosh, it isn't retail. Which is why your average bank member isn't getting a 6 figure bonus

Yup. Profits down 40% at Barclaycard. Unspectacular 17% increase in profits on UK retail mainly due to volume and efficiency increases.

In comparison.
International retail up to 572m from 335m last year.
Barcap profits up 55% - more than twice the net profit of retail.
BGI profits up 32%.
You can see what the profit engines are and they are not retail.

CopperPlate_2

Eck wrote:

Quite the contrary, i don't think it was an ill considered or daft comment, i for one, and probably many more thousands like me, feel that we do get well and truely ripped off in this country, how else do you explain a banks profits of more than £7 billion???????
They're creaming it in from you, me and every other customer, so get real eh.....:rolleyes:

PS do you work in the banking sector...:rotfl:

No I don't and have no desire to either.

Well, I think it was ill considered, and the follow-up was fairly ignorant too, but then that's just my opinion. And if you read on, and read the broadsheet press you might learn how the banks generate £7bn a year. And it ain't from 'ripping-off' poor souls like you - so perhaps you should be the one to get real, eh?

Eck

High levels of corporate and M&A activity. Perhaps you should read as far as the business pages in your copy of the daily mail.

Daily Mail??????????? how ignorant of you to assume that i read the Daily Mail, do you always make your ill informed judgements in this manner??

oldfella

I dont know what there is about this subject, but it seems to attract entrenched and probably interested opinions - and soon moves forward to personal rudeness

I exit

Mike

Justamum

mikael wrote:

It is actually very important for banks to get money into their business through current and savings accounts, as it then allows them to lend out even more. Through the fractional reserve banking system we have banks can issue loans effectively out of thin air, as long as they have about one sixth or so of what they have lent in deposits. I can assure you that banks do very nicely out of lending money against what they hold in deposits - just as their profits show.

So they loan out money they don't have, and have the cheek to charge interest on this non-existent money?! This sounds fraudulent to me. Actually they're not really lending out money, just shifting figures around on a computer.

RayWolfe

Funny old world.
We have a few, very few, world class companies who make good profits, pay lots of tax, employ lots of people, bring in lots of foriegn exchange ... and all we do is carp about it!
Do you think people in Germany, the US and Japan feel the same about their commercial sector? Get real people ... profit is not a bad thing. AND banks do not make their money from current accounts.

PosterBoy77

Al_Mac wrote:

If you take a look at Barclays results, I don't know for sure as I haven't looked at this years, but it shows which areas pull in the most dosh, it isn't retail. Which is why your average bank member isn't getting a 6 figure bonus

We know the retail side of things is not the most profitable by far, but that does not mean it is bad business, or that it is loss making.

PosterBoy77

regularsaver1 wrote:

current account customers tend to buy other products with the bank. not just bank account

Which I already said in my post anyway?! Still does not make the current accounts loss making.

PosterBoy77

tom188 wrote:

Yup. Profits down 40% at Barclaycard. Unspectacular 17% increase in profits on UK retail mainly due to volume and efficiency increases.

In comparison.
International retail up to 572m from 335m last year.
Barcap profits up 55% - more than twice the net profit of retail.
BGI profits up 32%.
You can see what the profit engines are and they are not retail.

I don't know why people harp on about this? The retail side of things still makes a profit, no matter how much smaller it may be when compared to other parts of the business. Profits would be lower without the retail business though, so it is not a cost or a lost leader.