Lloyds PPI Losses At An End

April 25, 2016
by admin in PPI News

First quarter losses for RBS proves to be its eight consecutive year of disasters with almost a billion pounds lost in profits.


The majority-taxpayer owned Royal Bank of Scotland had analysts say that its shorting revenues comes from its failure to sell off its Citizens business in the United States.

Now, it has chosen to return to its investment banking operation.

According to Investec Analyst Ian Gordon:

“I remain quite positive on RBS although it currently has ongoing profit margin erosion. They are taking a principled stand on abstaining from teaser rates, but it does mean their credit card balances are falling. On unsecured personal loans, RBS has decided they are not playing at ridiculous prices, which also reduces revenues.

“And among the UK domestic players RBS is the most positively geared towards UK interest rates rising, but they are not rising. I think McEwan’s gloss on it will be that we have to wait a bit farther out [for recovery].

“It is still involved in its big restructuring, and currently it is causing more pain to the revenue line than it is taking out in costs.”

Meanwhile, Lloyds, another majority taxpayer-owned bank, has lesser struggle than RBS. Analysts expect Lloyds to recover much better than RBS. Due to its minimal investment banking business, it is spared from the fluctuating values in the industry

However, it still has a huge payment protection bill of £16 bn, which has consistently hampered its profits for the last four years.

An analyst said that he did not expect any further hit in the quarter after Lloyds’ immense £2.1 billion charge in the fourth quarter of 2015.