Category Archives: Lloyds Banking Group

UK bank shares tumble after call for windfall tax on lenders in budget

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Investor jitters follow report by IPPR, with stock market value of sector cut by almost £8bn in morning trading

UK bank shares tumbled on Friday, cutting the stock market value of the sector by almost £8bn in morning trading, as fresh calls for a windfall tax on large lenders in the autumn budget spooked investors.

Calls for a tax grab, in a paper written by the Institute for Public Policy Research (IPPR) thinktank, took a toll on some of the UK’s biggest high street banks. NatWest Group suffered the biggest drop on Friday morning, registering a decline of as much as 5% in its share price, while Lloyds Banking Group and Barclays followed close behind, falling 4.5% and 3.6% respectively. HSBC dropped more than 1%.

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Pre-budget lift for Rachel Reeves as UK business confidence rises

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Despite concerns about economy, poll shows optimism about trading prospects at highest level since 2014

Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run-up to her autumn budget.

An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.

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UK banks brace for first-quarter reports after Trump tariff turmoil

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Lenders expected to split into two camps: those focused on domestic customers and those with large operations in the US, China and the EU

UK banks’ earnings reports will be studied this week for signs of turmoil linked to Donald Trump’s tariff drama, with uncertainty over global growth likely to weigh on lenders with heavy exposure to China, including HSBC.

First-quarter profits only reflect the January-to-March period that preceded the US president’s “liberation day” tariff announcements on 2 April. But investors will be concerned about any hints of caution around earnings forecasts, as well as an uptick in money put aside for defaults by tariff-hit borrowers.

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Women hold almost 45% of seats on FTSE 100 boards, report says

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New high tempered by dip in number of female CEOs at 100 biggest listed firms to fewer than 10 last year

Women occupy more than two in five seats on the boards of Britain’s biggest listed companies after further progress was made last year, but the number of female FTSE 100 chief executives dipped for a time to fewer than 10, according to a report.

The proportion of board positions held by women at FTSE 350 companies rose to a new all-time high of 43.4% last year, up from 42.1% in 2023, according to the government-backed annual FTSE Women Leaders Review. Among the 100 biggest listed companies, the proportion of women in the boardroom was even higher, at 44.7% versus 42.6% in 2023.

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Lloyds bankers could face bonus cut if not in office two days a week

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Group reviews office attendance as part of performance-related bonus targets forsenior employees

Senior bankers at Lloyds could be at risk of having their bonuses docked if they fail to follow company orders to be in the office at least two days a week.

Lloyds Banking Group – which owns the Halifax, Lloyds and Bank of Scotland brands – has confirmed it is reviewing office attendance as part of performance-related bonus targets for its most senior employees. That includes hybrid staff who, in 2023, were ordered to be in the office at least 40% of the time, which typically amounts to two days a week for those on full-time contracts.

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Boots says it will ‘draw lessons’ from research into links to slavery

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Report looked into donations to Nottingham universities by Jesse Boot, who expanded pharmacy chain

The high-street pharmacy Boots’s links to the transatlantic slave trade have been revealed in new research that shows how the proceeds of enslavement became entangled with British capitalism.

Jesse Boot, the son of the company’s founder, expanded the chemist with the help of banks and premises linked to slavery. He was not identified as involved in the enslavement of people, the trade of enslaved people or trade in goods made by enslaved people.

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Lloyds shareholders could take £1bn hit over car finance crisis

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Analysts forecast bank will have to halve £2bn buyback plan, as ex-boss of City regulator blames watchdog for crisis

Lloyds Banking Group could give almost £1bn less to shareholders this year as a result of the car finance crisis, analysts have said, as the City regulator’s former boss blamed the watchdog for the chaos.

The estimated size of a multibillion-pound compensation bill for motor lenders has grown after a shock court of appeal ruling last Friday, which said customers could not consent to motor loans that involved “secret commission” payments to brokers and car dealerships.

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Lloyds backs Reeves budget plans despite mooted tax increases

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Bank expects ‘constructive, pro-growth agenda’ by chancellor next week and seeks to be part of it

Lloyds Banking Group has backed the Labour government’s forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a “constructive, pro-growth agenda”.

The chief financial officer of the UK’s biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in key areas such as energy, infrastructure and housing.

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Lloyds sets aside £450m for car loan fines and payouts

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Bank’s profits rise 57% but it says there is ‘significant uncertainty’ over liability amid FCA investigation

Lloyds Banking Group has been forced to put aside £450m for potential fines and compensation for motor finance customers, after the UK regulator opened an investigation into whether consumers had been charged inflated prices for car loans.

The lender, which also owns the Bank of Scotland and Halifax brands, said there was “significant uncertainty” over the extent of any misconduct or loss to customers that could result in penalties or payouts.

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Lloyds and Santander accused of providing accounts for Iranian front companies

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Both banks deny helping Tehran-controlled oil firm PCC to move money in breach of sanctions

Two of the UK’s largest lenders, Santander UK and Lloyds Banking Group, allegedly held bank accounts for front companies that helped Iranian entities evade US sanctions, according to reports.

The news has rattled investors, who sold off shares in the two banks on Monday morning, amid fears that the lenders could face penalties if they are found to have in any way assisted Iran’s state-controlled Petrochemical Commercial Company (PCC).

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MPs add to pressure on ministers to vet Barclay family’s Telegraph offer

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Call for national security law to be used to investigate proposed deal involving consortium backed by UAE

A group of MPs including the former Conservative party leader Iain Duncan Smith have asked ministers to use national security law to investigate the Barclay family’s proposed deal to give control of the Telegraph to a consortium backed by the United Arab Emirates.

The group of 18 MPs, which also includes Alicia Kearns, the chair of the foreign affairs committee, have written to the deputy prime minister, Oliver Dowden, arguing that the proposed deal poses a “very real potential national security threat”.

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UK minister intends to refer Barclay family’s offer for Telegraph to Ofcom

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Government ‘minded to’ issue intervention notice to call in regulator on public interest grounds

The culture secretary intends to ask the media watchdog to examine the Barclay family’s proposed deal to hand control of the Telegraph and the Spectator magazine to an Abu Dhabi-backed consortium.

Lucy Frazer said on Wednesday she was “minded to” call in Ofcom to look at the investment fund’s plans to take over the titles in exchange for repaying £1.15bn of the family’s debts to Lloyds Banking Group.

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UK house prices will not stop falling until 2025, Lloyds predicts

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Britain’s biggest mortgage lender forecasts 5% drop over this year and another 2.4% decline in 2024

UK house prices will continue to slide this year and in 2024 and will not start to recover until 2025, Lloyds Banking Group has forecast.

The lender, which owns Halifax and is Britain’s largest mortgage provider, said that by the end of 2023 UK house prices would have fallen 5% over the course of the year and were likely to decrease by another 2.4% in 2024.

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Rupert Murdoch’s last move? The Spectator is in his sights

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Rightwing magazine is said to be a favourite of the billionaire and is considered a ‘trophy prize’

Rupert Murdoch may have officially stood aside as chair of his media businesses but he’s still eyeing up what could be his last major UK deal: the purchase of the Spectator magazine.

The rightwing magazine, which is due to be auctioned off next month, is said to be a favourite of the billionaire, who used his resignation statement to claim much of the media is “in cahoots” with elites who have “open contempt for those who are not members of their rarefied class”.

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UK savings: more accounts now offering 6%-plus interest

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Government-backed NS&I increases its rates, as building societies and banks launch better deals

Amid the mortgage misery, there was more good news this week on savings rates, with a growing number of accounts now paying 6%-plus interest.

Meanwhile, the government-backed NS&I – a favourite of many in these uncertain times – has upped the rates on some of its popular fixed-rate accounts.

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UK and US shares climb as banks and ministers aim to calm Credit Suisse fears

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FTSE 100 rises and European banking shares are up after early jitters over what UBS takeover deal means for bondholders

Stocks climbed on Monday in London and New York after central bankers and politicians sought to soothe jitters triggered by the emergency rescue of Credit Suisse during the weekend.

Central banks in the UK and eurozone issued statements aimed at reassuring investors that – unlike the controversial approach taken by the Swiss authorities in the Credit Suisse deal – their jurisdictions would follow a hierarchy in which equity holders would lose out before bond holders.

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Lloyds accused of ‘stuffing bankers’ pockets’ after proposed pay hikes for top bosses

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Chief executive Charlie Nunn could receive £9.1m payout, while top performing bankers to share £446m bonus pot for work in 2022

Lloyds Banking Group has been accused of “stuffing the pockets of already overpaid bankers” after proposing increases for top bosses that could result in a £9.1m payout for its chief executive, Charlie Nunn.

The bank revealed on Wednesday that staff would share a £446m bonus pot – the highest in four years – for their work in 2022, despite reporting flat annual profits, after an increase in the money put aside for a potential jump in defaults.

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Lloyds and Halifax to close 40 bank branches in England and Wales

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Full list of site closures, which will start in April and carry on through into June this year

Lloyds and Halifax have become the latest high street banks to announce a series of branch closures across England and Wales.

Lloyds Banking Group, which owns both banks, is to close 18 Halifax sites and 22 Lloyds branches, starting in April and through into June this year.

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Revealed: UK local councils deposit taxpayers’ cash in Qatar state bank

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Town halls and finance firms say they support LGBT rights but send money to World Cup host where homosexuality is illegal

The rainbow flag flew above the Bourne Corn Exchange as South Kesteven council embraced LGBT history month.

A year after voting against such a gesture the Lincolnshire local authority declared itself pleased “to celebrate and recognise the […] rights of lesbian, gay, bisexual and transgender people”, hoisting the flag outside its headquarters in 2019.

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Lloyds bank profits plunge by 26% as lender prepares for bad loans

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Larger-than-forecast drop to £1.5bn in third quarter came despite rising interest rates

Profits at Lloyds Banking Group dropped by 26% in the three months to September, as the UK’s “deteriorating” economic outlook forced it to put aside nearly £670m to protect against potential defaults on loans and mortgages.

Lloyds, which owns Halifax and is the country’s largest mortgage lender, said pre-tax profits had tumbled to £1.5bn in the third quarter, down from £2bn during the same period last year. That was larger than the 9.5% fall to £1.8bn that analysts had predicted.

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