HBOS shares

ad44downey

HBOS shares CRUMBLE 23% today.

Lloyds TSB shareholders must be rueing the decision to rescue this turkey

sabretoothtigger

bad debts and other losses this year have soared to £8bn

Earlier this morning, HBOS said a 'significant' deterioration in corporate credit conditions meant it had to raise its estimated impairment charge to £3.3bn for the 11 months to 30 November, up from an estimated £1.7bn on 30 September.

The deterioration in the trend in secured lending arrears has, taken together with continued sharp declines in house prices, resulted in an estimated secured lending impairment charge of £0.7bn for the 11 months to 30 November 2008 (£0.4bn 30 September; £0.2bn 30 June 2008).

The estimated impairment charge for unsecured lending arrears is £1.0bn for the period (£0.8bn 30 September 2008; £0.5bn 30 June 2008). "In light of the worsening economic climate, trends in Retail impairment charges are likely to come under further pressure," it said.

HBOS investment portfolio reported an estimated loss of £0.8bn for the 11 months (£0.1bn loss 30 September 2008; £0.1bn profit 30 June 2008). Investment valuations are expected to remain under significant pressure in its private equity and joint venture businesses.

The group said credit conditions continue to deteriorate in Australia, Ireland and North America and this has resulted in some increase in impairment charges.
As at 30 November the estimated losses due to market dislocation totalled £2.2bn (£1.8bn 30 September 2008; £1.1bn 30 June 2008).

http://uk.biz.yahoo.com/081212/214/ic82h.html

martinbuckley

ad44downey wrote: »

HBOS shares CRUMBLE 23% today.

Lloyds TSB shareholders must be rueing the decision to rescue this turkey

I'm a shareholder in Lloyds TSB and cannot, for the life of me, understand why they want to buy HBOS. Lloyds had kept itself away from dodgy loans and their shareprice, although it had fallen, had not colapsed. All of a sudden they announce this takeover and they fall through the floor. Why they couldnt negotiate a Santander-style A&L/B&B purchase is also beyond me.

I'd love 10 minutes in a room with the LloydsTSB directors and a baseball bat...

sabretoothtigger

:rotfl: right you ******* this is how its going to go down now Im the daddy, we burn hbos to the ground and claim on insurance, you got it ? good now get

A&L didnt have so much toxic debt and was pretty small, santander is much bigger then lloyds.
Hbos is bigger then lloyds and is loaded with toxic and normal uk debt handed out at peak prices.

The only reason to buy hbos is the customers and long term market share. The new bigger bank will rival hsbc operations in the uk and santander, economies of scale give them a better prospect

Compare lloyds to rbs who outbid barclays to buy a massive bank at the highest possible value and lloyds look like gold prospectors on a solid seam

Count_Dante

A lot of the 'profits' that banks have been generating down the years have come from dodgy, high risk stuff that has imploded. I don't think banks will be ever be the same after all this. I don't know if bank shares are worth it even now.

sabretoothtigger

I can remember even last decade natwest hauling in 2 bn in pure profit for one year. Im pretty sure most of that was from normal ruthless activities not mortgages

Banks havent really been invested in mortgages till recently, in the 70's they had like 5% market share between all of them then some rule was changed as to funding I think it was (+Securitization)and they started to move in on the building societies and more recently buy them out

http://en.wikipedia.org/wiki/Securitization


http://www.prnewswire.co.uk/cgi/news/release?id=23686

opinions4u

martinbuckley wrote: »

I'm a shareholder in Lloyds TSB and cannot, for the life of me, understand why they want to buy HBOS.
Once the naff lending is written off, and the subsidiaries of HBOS are stripped out you have the high street arm of Halifax and Bank of Scotland. They have more customers than any other UK bank and also have the most profitable retail (not corporate) division.

Lloyds had kept itself away from dodgy loans and their shareprice, although it had fallen, had not collapsed.
Depends on your definition of collapse. Down 80% isn't great, and while better than HBOS by a long way, is was down a hell of a lot before the merger appeared.

All of a sudden they announce this takeover and they fall through the floor. Why they couldnt negotiate a Santander-style A&L/B&B purchase is also beyond me.
Santander paid over £2 a share for A&L. Lloyds are buying HBOS shares for around 90p. The retail arm of HBOS is a far better business than A&L. Shame their corporate lending and treasury operations are so dire!

I'd love 10 minutes in a room with the LloydsTSB directors and a baseball bat...

While there are risks in buying HBOS, I suspect the long term rewards will be significant for shareholders, once the government share is bought out.

sabretoothtigger

Hbos is definitly bigger, check out how much these companies ballooned in size apart from lloyds which only went up a third in 3 years. Even Hsbc did that, safely?

poppy10_2

HBOS announces today that 0.24% of its rights issue shares have been taken up
LLoyds TSB announces today that 0.50% of its rights issue shares have been taken up


The government therefore, which is underwriting the deal, will own 43% of the new merged bank.

poppy10_2

setmefree wrote: »

Over Twelve months HBOS have dropped dramatically :eek:

1097.00 and now 400.00:(

And finally we come to the end of a very long road.

HBOS shares were today suspended forever. Final closing price 70.1p - down 94% from summer 2007.

From January 19th HBOS shares will be replaced by the new LLoyds Banking Group shares.

Goodbye, HBOS. It's been nice knowing you