Even families receiving help face higher energy bills than during the last energy price shock, analysis finds
Lloyds Banking Group’s chief financial officer William Chalmers said the bank hopes that the tax increase on banks announced in the budget is a “temporary measure,” as the lender’s quarterly profits doubled.
John Healey used the budget to double the additional levy banks pay on their profits, to 6%.
We lend out 99 pence of every pound we receive in deposits and our ambition is to do more. In this context, we know that the increase in the surcharge announced by the chancellor yesterday, we recognise the tactic is a matter for the government. The fiscal environment is challenging.
Ultimately, it is important that the UK banking sector is able to deliver banking services to businesses and households and communities in a cost effective way.
With provisions for the motor finance investigation all now but buried and with higher income flowing through, Lloyds has enjoyed a bumper quarter which puts the bank in prime position to meet its full year targets.
Some of the clouds which have been overhanging the sector leading up to the budget, and the domestic banks in particular, have now partially parted. The increase to the bank surcharge was less than feared, manageable and temporary and led to a small relief rally in Lloyds’ shares yesterday. Other concerns also remain on the back burner, with the level of defaults and arrears low and stable, although in typically conservative fashion Lloyds has increased impairment provisions for the quarter to £313m, or £930m in the year to date.
Continue reading...
