Lloyds profits explode thanks to Covid mortgage market – .

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Lloyds profits explode thanks to Covid mortgage market – .


LLOYDS BANK has made a profit of £ 2 billion in the past three months, in part thanks to a booming mortgage market as Britons sought larger homes for their families in a world of Covid.

All banks have seen mortgage sales soar.

This is a godsend for Charlie Nunn, the new CEO of Lloyds presenting his first results.
Its CFO William Chalmers said: “The mortgage market has been very strong. There has been a low unemployment rate and low interest rates. People have sought to move outside of urban centers to find more space.
These £ 2 billion in profits are double what they were a year ago. A £ 84million write-back on money set aside for bad debts also helped.
A total of £ 740million of the £ 1.2 billion held during the pandemic has now been added to the toll.
The performance of Covid loans has been “ahead of our expectations,” said Nunn, a former HSBC banker who replaced Antonio Horta-Osorio earlier this year.
The bank did not pay staff bonuses last year, but they are expected to return. Nunn said, “We believe it is appropriate to reward employees fairly and competitively,” said the CEO.
Lloyds shares have been trading for years, down about 15% over the past five years.
Today they opened 1p to 50p with the bank increasing its forecast for the rest of the year. Margins are expected to rise along with interest rates, with the broader economic outlook “benign”.
Banks recently withdrew their cheapest fixed-rate mortgage offers from the market pending an interest rate hike.
Several did so yesterday, just hours after the budget.

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