Lloyds named largest lender

Lloyds Banking Group (LLOY) has been named the UK's biggest mortgage lender, closely followed by Santander and Nationwide.

Following several banks joining forces to weather the credit crunch, and specialist lenders going bust, it now appears that just a handful of lenders are keeping us in mortgage loans.

Lloyds, Santander and Nationwide, as the top three lenders, together controlled 55% of the market in 2008 and collectively approved 142.2 billion of mortgages.

And the top six firms (full list below) last year accounted for 78% of all new home loans. The Council of Mortgage Lenders (CML), which compiled the list, says the main players within the mortgage market have changed dramatically since 2007, as a result of the lack of funding for banks, the banking crisis and several firms disappearing.

Smaller banks and building societies have moved up the list as a result of the changes, with the likes of Yorkshire and Clydesdale banks moving from 15th largest in 2007 to ninth largest last year.

Northern Rock, meanwhile, has moved from the fourth biggest lender in 2007 to the 11th biggest, while HSBC (HSBA) - which has only recently taken a serious interest in mortgage lending - jumped two spots to become the sixth largest mortgage lender. The global banking giant is likely to have gained an even larger market share so far in 2009.

Overall new lending fell by 28% last year; gross lending totalled just 261 billion, well below its peak of 364 billion in 2007.

Bernard Clarke, spokesman for the CML, says: "Typically, our table of the largest 30 lenders shows only a handful of changes from year to year. This year, however, it has a much less familiar look, showing just how much has changed in the last year or so."

The lack of wholesale funding for lenders has had a dramatic impact on specialist players, which typically lent sub-prime, buy-to-let and self-certification loans through brokers rather than directly to borrowers. In 2007, these types of lenders accounted for more than 7% of gross lending, but their share has now shrunk to just 2%.

HBOS, the banking group consisting of Halifax and Bank of Scotland, has in previous years taken the top spot in the CML's table of the 30 top lenders. Its merger with Lloyds' TSB has seen the latter bank move from second positive (with Cheltenham & Gloucester) and third position to dominate the top spot.

Santander is also a relatively new name to the list, although its UK banks - Abbey and Alliance & Leicester - have long had a high profile in the list.

To make the comparison between 2008 and 2007 more meaningful, the CML says it has had to rework the figures as if the merger and acquisitions activity that took place in 2008 had occurred earlier.

Going forward, the CML expects 2009's figures to show even more changes, with more names moving up and down the ranks, and an even larger market share in the hands of the largest firms.

"While some specialist lenders remain in the list for last year, we would expect shrinkage of this sector to continue while current market conditions persist," says Clarke. "Meanwhile, the lending commitments from the nationalised and part-nationalised banks suggest yet more growth in market share for this sector. And, of course, we may not have seen the end of the current wave of consolidation."

Lloyds reviews C&G decision -- 20.08.09

Cheltenham & Gloucester may live to see another day on the high street after Lloyds Banking Group (LLOY) said it was rethinking plans to close the 164-strong branch network.

Back in June, the banking group - which was recently named the UK's largest mortgage lender - revealed plans to close the branch network, making 1,660 staff redundant. However, it said the brand would be retained with a focus on online savings accounts and sales of mortgages through brokers.

In a twist to the tale, Lloyds has now announced that it may in fact double back on this decision - but whether this means Cheltenham & Gloucester branches will remain open or be sold to another bank remains to be seen.

In a statement, the bank says: "Lloyds Banking Group is reviewing the planned closure of the Cheltenham & Gloucester branch network."

It adds that affected Cheltenham & Gloucester staff have been informed of the potential changes, and that customers should continue to use their branches as usual.

David Buik, economist at BGC Partners, doesn't believe there is any reason for Lloyds to keep its Cheltenham & Gloucester branch network open.

"Frankly one brand is enough - Lloyds increased its market share for mortgages from 28.2% to 28.6% by the end of 2008," he adds. "Sadly, Cheltenham & Gloucester is superfluous to requirement."

One alternative is to sell Cheltenham & Gloucester altogether. Buik says: "Selling Cheltenham & Gloucester would put some much needed money in the bank. Closing it would cut costs. Management is decent and this mortgage lender would fit very snugly into a retail bank's portfolio."

Others suggest that the volte-face indicates that Lloyds could be considering a sale to appease competition concerns of the European regulators. Lloyds is currently waiting to be given the go-ahead to use the state-backed asset protection scheme for 260 billion of its toxic assets.

The European regulator has already suggested that Lloyds would need to reduce its presence in the mortgage and deposits market in order o get approval.

Names in the frame to purchase Cheltenham & Gloucester include Barclays (BARC), which only has a 6.6% share of the mortgage market through Woolwich, National Australia Bank and even HSBC (HSBA). However, with the credit crunch still causing financial pain for most banks, it may be tough to clinch a sale.

Analysts also point out that finding a buyer could prove a difficult task as low interest rates means savings are loss making while lenders would rather write new mortgages than acquire a book which may come with potential problems.

Shares in Lloyds were continuing their good form from yesterday, up over 3% to 102.1 today.

Business attitudes improving

Nearly three quarters of UK businesses surveyed in a recent Barclays Commercial Bank poll now describe their attitude towards the economy as either hopeful or excited, while a similar amount are either continuing to grow or predict they will return to growth within the next 12 months.

The Connecting Business survey, carried out at Barclays Commercial events held at locations across the UK, found that 57% of respondents characterised their outlook towards the economy as hopeful, with a further 17% describing their attitude as excited.

Only 11% stated they were worried by the general state of the economy.

The research also revealed a confident stance towards recovery, with 15% of respondents believing their company will move back into a sustained growth phase within the next six months and 28% believing this will occur within 6 to 12 months. Additionally, 29% claimed their business continues to grow.

Ian Stuart, Managing Director, Barclays Commercial Bank, said: 'Confidence is key to recovery and the results of this survey demonstrate a real and growing confidence in UK businesses. The past 18 months have provided an extremely testing environment for many organisations; however, after evolving to meet the challenges of this new commercial landscape we are now seeing the beginnings of a renewed drive for growth.

'We believe there is a long way to go before we see a full economic
recovery, but it is encouraging to see so many businesses displaying such a positive mindset.'

A significant number of business leaders also stated that the current recession was positively affecting motivation levels of staff and management within their organisation, with 30% of respondents claiming that motivation was increasing and 54% stating that motivation was holding steady.

42% of respondents found business organisations and federations an important partner in meeting the challenges posed by the
recession.
Only 5% of respondents believed it would take more than 18 months for their company to move back into a sustained growth phase.

A significant majority (70%) of business leaders are working towards creating or sustaining a profitable niche, as opposed to the 9% who are focusing on just surviving.

The research was conducted as part of Barclays Commercial's Turning the Corner initiative which combines practical guidance, workshops, industry discussions and networking events to offer business owners and managers specific skills and knowledge that will help them in meeting the unique challenges, and identifying potential opportunities, the current recession presents.

From The Times August 22, 2009

Lloyds could face 1bn bill as it eyes exit from protection schemeKatherine Griffiths, Banking Editor

Lloyds Banking Group may have to pay about 1 billion to the Government if it opts out of the taxpayer-funded insurance scheme for toxic assets. The payment would represent recognition that Lloyds has been stabilised by the Governments special asset protection scheme (APS), announced in February.

Lloyds, which is 43 per cent-owned by the taxpayer and which has been planning to place up to 260 billion of toxic assets into the APS, is thinking of walking away from the the scheme or cutting its participation. It no longer thinks that it needs the scheme because bad debts have peaked and the economy is improving.

If Lloyds does tear up the agreement, the Treasury is likely to insist on a fee recognising that the announ- cement of the APS provided crucial stability for the bank. The European Commission is also likely to say that Lloyds would have to pay a fee because the deal over the APS has been part of the state aid for the bank.

Lloyds is due to pay the Government almost 15.6 billion for using the APS, a sum that the bank and its shareholders believe is punitive.

Lloyds wants to keep the Governments stake as low as possible another reason for bypassing the APS. Under the existing agreement, Lloyds would pay for the scheme in new B shares issued to the Government, which would increase the States stake to 60 per cent, although the Governments voting rights would be capped at 43 per cent.

The bank is planning to pay the fee over seven years, making its annual cost slightly more than 2 billion. That could mean that the Government demands about 1 billion from Lloyds for the benefit it has felt over the first six months of the year.

Lloyds is still considering its options and many of its large shareholders are wary about walking away from the APS. They also do not want to support a rights issue for about 20 billion, the sum that analysts believe Lloyds would have to raise so that it would have enough capital to stay outside the APS.

The bank might be able to persuade shareholders to back a rights issue of about 10 billion, enabling it possibly to cut its use of the APS in half.

The Government would probably take up its own rights in a capital raising, it is thought, which would mean that institutional shareholders would have to provide only 6 billion. As well as getting shareholders on board, Lloyds would have to persuade the Financial Services Authority that it could pass the regulators stress tests without the APS. The FSA is likely to take a very conservative approach to making an assessment.

There is rising speculation that Lloyds is considering another option to issue some of the new B shares for the APS to institutional investors, rather than to the Government. This would allow the bank to keep state ownership at its lowest level. Investors would pay for the B shares, providing cash that Lloyds could use to pay a fee to the Government.

Adding a further layer of complexity, Lloyds is waiting to hear what measures the European Commission will insist it takes to mitigate the billions of pounds of state aid that it has received since the Governments bailout of banks last October. Among the expected remedies are forced sales of some of its assets, which might include Bank of Scotland or the Lloyds TSB franchise in Scotland.

The Government rushed out the APS scheme to stop the implosion of Lloyds and Royal Bank of Scotland (RBS), by promising that the taxpayer would pay for both banks losses beyond a certain point.

RBS, which is 70 per cent-state controlled, is putting in 325 billion of toxic debt. Both banks have signed agreements in principle.

What a load of journo rubbish, completely forgot to mention LLOY saved the government from having to takeover HBOS.

1bn is fuck all anyway considering what hbos cost them...look at the chart ,this is going only one way...north bigtime..200p by end of september...trust me

Isn't that what Bernard Madoff & Allen Stanford said?

From The Times August 22, 2009

Lloyds could face 1bn bill as it eyes exit from protection schemeKatherine Griffiths, Banking Editor

Lloyds Banking Group may have to pay about 1 billion to the Government if it opts out of the taxpayer-funded insurance scheme for toxic assets. The payment would represent recognition that Lloyds has been stabilised by the Governments special asset protection scheme (APS), announced in February.

Lloyds, which is 43 per cent-owned by the taxpayer and which has been planning to place up to 260 billion of toxic assets into the APS, is thinking of walking away from the the scheme or cutting its participation. It no longer thinks that it needs the scheme because bad debts have peaked and the economy is improving.

If Lloyds does tear up the agreement, the Treasury is likely to insist on a fee recognising that the announ- cement of the APS provided crucial stability for the bank. The European Commission is also likely to say that Lloyds would have to pay a fee because the deal over the APS has been part of the state aid for the bank.

Lloyds is due to pay the Government almost 15.6 billion for using the APS, a sum that the bank and its shareholders believe is punitive.

Lloyds wants to keep the Governments stake as low as possible another reason for bypassing the APS. Under the existing agreement, Lloyds would pay for the scheme in new B shares issued to the Government, which would increase the States stake to 60 per cent, although the Governments voting rights would be capped at 43 per cent.

The bank is planning to pay the fee over seven years, making its annual cost slightly more than 2 billion. That could mean that the Government demands about 1 billion from Lloyds for the benefit it has felt over the first six months of the year.

Lloyds is still considering its options and many of its large shareholders are wary about walking away from the APS. They also do not want to support a rights issue for about 20 billion, the sum that analysts believe Lloyds would have to raise so that it would have enough capital to stay outside the APS.

The bank might be able to persuade shareholders to back a rights issue of about 10 billion, enabling it possibly to cut its use of the APS in half.

The Government would probably take up its own rights in a capital raising, it is thought, which would mean that institutional shareholders would have to provide only 6 billion. As well as getting shareholders on board, Lloyds would have to persuade the Financial Services Authority that it could pass the regulators stress tests without the APS. The FSA is likely to take a very conservative approach to making an assessment.

There is rising speculation that Lloyds is considering another option to issue some of the new B shares for the APS to institutional investors, rather than to the Government. This would allow the bank to keep state ownership at its lowest level. Investors would pay for the B shares, providing cash that Lloyds could use to pay a fee to the Government.

Adding a further layer of complexity, Lloyds is waiting to hear what measures the European Commission will insist it takes to mitigate the billions of pounds of state aid that it has received since the Governments bailout of banks last October. Among the expected remedies are forced sales of some of its assets, which might include Bank of Scotland or the Lloyds TSB franchise in Scotland.

The Government rushed out the APS scheme to stop the implosion of Lloyds and Royal Bank of Scotland (RBS), by promising that the taxpayer would pay for both banks losses beyond a certain point.

RBS, which is 70 per cent-state controlled, is putting in 325 billion of toxic debt. Both banks have signed agreements in principle.

Nar1

Is your memory faulting?

It must be, if repeating the the same -copy and paste - the same day

Resolution, Lloyds in talks over C. Medical -- Sun 23 Aug, 2009

LONDON (Reuters) - Entrepreneur Clive Cowdery's Resolution (RSL.L) has held early stage talks with Lloyds Banking Group (LLOY.L) over the sale of its Clerical Medical unit, the Mail on Sunday reported, citing an unnamed source.

Industry observers suggest the sale of Clerical Medical, which Lloyds acquired when it bought HBOS, could fetch up to 4 billion pounds, the paper said.

Lloyds and Resolution declined to comment.

Resolution, which raised 600 million pounds in a stock market listing last December to buy and restructure life insurers and asset managers, is the leading candidate to buy unwanted businesses from Lloyds.

-------------------------
HBOS was board's deal - Lloyds' chair -- Sun 23 Aug, 2009

LONDON (Reuters) - Victor Blank, outgoing chairman of Lloyds Banking Group (LLOY.L), said the bank's board was behind the decision to buy HBOS, not the UK government.

"There is a perception that the government was involved, but let me say very clearly: this was not Gordon Brown's deal," he said in an interview with the Sunday Times newspaper.

"It was the Lloyds board's deal, done with the right investigation, right process, right discussion -- and the board made a decision."

Lloyds agreed to buy HBOS in the depths of the banking crisis last September and weeks later was forced to surrender a 43 percent stake to the government in return for a 17 billion pound bailout. It posted a first-half loss, battered by bad debts from HBOS.

The paper also reported that incoming chairman Win Bischoff is facing pressure from some investors to clear out the boardroom.

A spokesman for Lloyds declined to comment on the report.

Bischoff is due to start as chairman on September 15.

TOP performer today, up to 108.50p at one time, now FTSE is taking a rest and the shares are at the moment 107.12 +5.54p

Naturally breaking the last high of 105p

------------------------------Intraday --------------------------------------------------- 3 month ------------------------

    

Anybody else see this hitting 2

maybe 3p but not 2

very good

when is the ceo going to tell holders the direction of the company the PR is piss pour. complete shite

are we about to get a RI AGAIN IN LLOYS that is now the latest

Awesome! Bought the last lot @ 38.5p and sold them at 98p. Keep 'em coming I say!

Lloyds cuts 200 jobs in general insurance

LONDON (Reuters) - Lloyds Banking Group, 43 percent owned by the government, will cut 200 jobs in its general insurance division by the end of January in a shake-up of back office functions, the bank said on Tuesday.

Lloyds, which agreed to buy rival HBOS last year, said it was combining the support operations of Lloyds TSB and HBOS General Insurance, including sales, marketing, actuarial and underwriting operations.

The bank said the jobs would be cut in locations including Wales and Yorkshire.

Analysts have estimated that over 30,000 jobs could be cut as Lloyds integrates HBOS.

Breaking new highs today now 111.50p +3.75p

How high are they going to go??????