barclays will ge coming out with trading update on 07.05.2009 It is expected to report profits higher than market expectations.

A good Buy Medium to Long term

Barclays to acquire ING Direct UK

Barclays Bank PLC ("Barclays") announces that it has agreed to acquire the deposits, mortgages and business assets of ING Direct UK. The acquisition follows the announcement by ING on 2 August 2012 of a review of its strategic options for the ING Direct UK business, and its subsequent decision to exit the UK retail banking market.

Under the terms of the transaction, Barclays will acquire a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn (as at 31 August 2012). The mortgage book had a loan to value ratio of 50 per cent as at 31 August 2012 and is being acquired at an approximate three per cent discount. The deposit book is being acquired at par. The transaction is expected to be accretive to return on equity immediately and the impact on Core Tier 1 capital is not material.

Interesting, How much did ING cost?

Investec has reiterated its 'buy' rating and 250p target price for UK banking group Barclays after the firm's purchase of the ING Direct UK business, saying that its reflects the process of 'evolution, not revolution'.

"While other issues may make the headlines, one hallmark of Chris Lucas’s tenure as CFO has been a string of small, value-accretive, bolt-on retail acquisitions. Today’s announcement of the purchase of the ING Direct UK business (at a discount) is a continuation of this trend – adding £10.9bn deposits, £5.6bn mortgages, 750 staff and 1.5m customers," said analyst Ian Gordon.

"While the selective acquisition of distressed Lehman assets in 2008 may go down in history as the most daring, opportune and immediately value accretive transaction of all, Barclays’s disciplined but committed approach to opportunities in the retail space is acting as a particularly useful source of sustainable value accretion."

Yes, But how much did ING cost?

From the above it appears the deposit book is being acquired at par value (ie £1 for £1) & the mortgage book at a 3% discount. So the profit is 3% of £5.6bn set against the cost of 750 salaries !

If their salary is less than 220k on average, Barc is a winner.

Thanks All, Cost about £300 Million apparently.

This is starting to look an interesting chart!

I agree Skinny, I bought some on Monday

Thought about getting some yesterday but hesitated, silly me!

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Statement on Payment Protection Insurance

Barclays has experienced higher than previously anticipated levels of Payment Protection Insurance ("PPI") claim volumes since the end of the first half, and has therefore determined that it is appropriate to provide a further £700 million as at 30 September 2012. This is in addition to provisions recognised of £1 billion in 2011 and £300 million in the first quarter of 2012. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of expected costs of future PPI redress. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision.

On 31 October 2012, Barclays will announce its third quarter Interim Management Statement. Barclays currently expects the Group adjusted profit before tax, which excludes the impact of own credit (expected to be a charge of £1.1bn) and the provision for PPI redress, for the three months ended 30 September 2012 to be broadly in line with current market consensus of £1.7 billion.

Missed it. I will buy below 239, if it falls that much.

I'm warming to this one.

sounds like they may make a loss, possible short?

Think they made more than they want to reveal in the current climate so doing a one and all write of any shite they can get away with and blaming it on PPI and pushing profits to reserves so that from here in on every suprise will be on the upside.

New management blames old , then releases reserves and takes credit when things not as bad as first thought.

Been there done that :-))

Market seems to agree.

BWTFDIK :-)

.. And what about the liabilities of other banks then regarding PPI?

Dil - absolutely SFA :-)

Sandy Chen of Panmure Gordon:
"Barclays (BARC LN, £29bn mkt cap, 241p, Sell) – It’s worth noting the change in wording that BARC used to announce the £700m in additional PPI provisions for 3Q12. For the £300m in additional PPI provisions in 1Q12, management indicated that claims volumes, although uncertain, were trending downwards. Yesterday afternoon’s RNS cited “higher than previously anticipated levels” of PPI claims since 1H12; this prompted a call to the PPI helpdesk at the Financial Ombudsman, where the service rep confirmed that well over 1,000 new calls are coming in daily.

In the 1H12 results, BARC noted that £894m of the £1,300m in PPI provisions had been utilised; we read the additional £700m in provisions as signalling that the pace of both new claims and utilisations has picked up. Thus, we expect that these PPI provisions won’t be the last for BARC. We had already expected further PPI in our forecasts, but we are raising our other operating expenses forecast for 2H12 from £788m to £1,182m (from 0.4% of RWAs to 0.6%) to take into account further provisions for PPI, LIBOR etc.

We expect that BARC will continue to exclude PPI provisions (and LIBOR and interest rate swap mis-selling fines and provisions) from its adjusted results; we will continue to include them in our earnings forecasts, on the view that if BARC chose to include the original income from PPI, it should recognise the costs associated with them. Read across to RBS (RBS LN, £32bn mkt cap, 287p, Sell) and Lloyds (LLOY LN, £29bn, 42p, Sell) as well."