Lloyds 2011 Results are out...

Generali

....and they make pretty sorry reading.

http://www.investegate.co.uk/Article.aspx?id=201202240700130514Y

They made a loss of £3,542,000,000 in 2011 before tax vs a profit of £281,000,000 in 2010.

The ray of sunshine in the results is that the amount they have set aside for loans that are unlikely to be repaid has fallen from 2% to 1.6% of loans outstanding. Unless they've been selling off the crap, that should mean that most of the rest of the banking system in the UK is seeing the same thing.

They note (rather optimistically) that they are now allowed to pay dividends again only, ermmm they can't afford it right now. Maybe next year.

To be fair, they set aside £3,200,000,000 for PPI fines and settlements.

wotsthat

The PPI money set aside seems to be a way of getting the bad news out of the way in one go. They can't expect to have to spend £3.2bn to resolve it surely? I find it difficult to believe that misselling has occurred on such a scale. It would seem to imply a cunning scheme to snare even the astute or a generally gullible UK consumer that has hopped on a bandwagon conveniently travelling past their front door.

Masomnia

Can we read much into the fact that cash held at the central bank has gone up from £38bn to £60bn? Strikes me as a lot. Getting out of sovereign debt? Looks a bit 'bearish'.

The other thing I noticed was just how much the results bear out the deleveraging in the wider economy, deposits up and loans down.

Generali

Masomnia wrote: »

Can we read much into the fact that cash held at the central bank has gone up from £38bn to £60bn? Strikes me as a lot. Getting out of sovereign debt? Looks a bit 'bearish'.

The other thing I noticed was just how much the results bear out the deleveraging in the wider economy, deposits up and loans down.

I believe it's a part of 'deleveraging' and also an effect of QE.

VfM4meplse

I'm just a simple soul, but how can any business award staff bonuses of £375 million whilst making a loss of £3.5 billion? Even w/o setting aside funds for the mis-selling scandal, there is still a loss at year-end. Surely staff incentives should be based on the overall profitability of the company?

Generali

In other news.....


.....Lloyds 2011 results are out today and they make splendid reading. Profits were up 3% to £6,349,000,000.

- Core combined businesses profit before tax increased 3 per cent to £6,349 million.

Generali

Furthermore.....

...Lloyds 2011 results are out today with profits up a stonking 21%:

- Combined businesses profit before tax increased 21 per cent to £2,685 million in 2011

Generali

All 3 figures are taken from the same RNS (the news release that is sent to the stock exchange so everyone gets the same news at the same time). So in 2011 Lloyds bank might have:

1. Made a profit of £6,349,000,000
2. Made a profit of £2,685,000,000
3. Made a loss of £3,542,000,000
4. Something else

I should do a poll.

Generali

VfM4meplse wrote: »

I'm just a simple soul, but how can any business award staff bonuses of £375 million whilst making a loss of £3.5 billion? Even w/o setting aside funds for the mis-selling scandal, there is still a loss at year-end. Surely staff incentives should be based on the overall profitability of the company?

Because they might have made a profit of almost 7 billion quid!

Surely £375,000,000 is a small price to pay.:D

wotsthat

Sounds brilliant.

I'm so glad I've been a shareholder since 2006:(

Masomnia

'If you strip out the loss making bits, we made a profit!'