View more on these topics

Lloyds is paying back Bank of England quicker than expected

Lloyds Banking Group is paying back loans from the Bank of England quicker than expected after the success of its funding strategy.

In its Interim Management Statement the Group says it has made excellent progress on funding and has been able to voluntarily accelerate repayments of central bank loans.

The Group says that having exceeded its initial full year public term issuance plans of £25bn by the end of September, it has subsequently issued a further £2.5bn of public term issuance.

It has also raised approximately £11bn in private issuance.

The report states: “As a result of our funding plans, we have been able to voluntarily accelerate repayments of certain central bank facilities.”

The Group also reported that, in line with the first half, there was good growth in retail primarily a result of the continued migration of mortgage business onto standard variable rate products.

And higher new business mortgage margins as assets are priced to more appropriately reflect risk and funding costs.

The demand for new lending remains subdued but gross mortgage lending during the Q3 was up on the same period last year.

New mortgage lending continues to be focused on supporting the home mover and first time buyer markets, and so far this year Lloyds has leant to  35,000 first time buyers.

The Group has also delivered good underlying income growth in its core business on a combined businesses basis in Q3, excluding the impact of liability management exercises.

Eric Daniels, outgoing group chief executive of Lloyds, says: “I am pleased to report that we had a good Q3 in our core business as we continue to deliver against the group guidance we provided at the interims.

“Core income growth, margin improvement, integration savings, funding progress and balance sheet reduction all remain on target, giving us confidence that we will deliver a good financial performance for the current financial year.”

It also says that mortgage arrears and repossessions have remained stable and that it is comfortable it will meet the Basel III capital requirements.


Newcastle offers semi-exclusive deal at 90% LTV

Newcastle Building Society has launched a semi-exclusive 90% LTV deal at 5.99%. The two-year fixed rate comes with a £195 reservation fee and a £499 completion fee. It has also launched a 3.95% fixed rate deal at 80% LTV, which also has a £195 reservation fee and a £800 completion fee. The products are available […]

Qatar cover image - thumbnail

White paper — Qatar International Insights

Jelf Employee Benefits highlights new legislation, key requirements and policy considerations when structuring international private medical insurance (IPMI) for expatriate employees in Qatar. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Qatar.


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • jack loach 7th February 2011 at 7:23 pm

    Update . FEB 7 th 2011

    Nov.23 – – -Nov.26 th. 2010.
    The following sent to – – – – 312- – Lords – – – – – – House of Lords.
    The following sent to – – – – 649 – – M.P.’s – – – – – House of Commons.


    Pictet & Cie Bank.

    Ivan Pictet.
    Charles Pictet.
    Nicolas Pictet.
    Jacques de Saussure.
    Jean – Francois Demole.
    Renaud de Planta.
    Philippe Bertherat..

    Pictet & Cie.- claim they are the “Rolls Royce”of Swiss banks.

    Swiss Banks or more correctly Swizz banks.

    Swizz. —- “ a great disappointment.” or a “ fraud.”

    Fraud. —“ an intentional deception or dishonesty.”— “a crime.”

    Crime. —“ an act committed or omitted in violation of a law.”

    Serious Crimes .
    Conspiring to pervert the Course of Justice.
    Perverting the Course of Justice.
    Contempt of Court.

    Pictet & Cie Bank –Partners –(1996—2010)—guilty.
    Peters &Peters – Partners.— (1999—2010)— guilty.

    The bank and it’s officials/lawyers deliberately withheld crucial documents requested under a High Court order. The bank and it’s officials/lawyers deliberately withheld evidence from the Police, and one of it’s account managers Susan Broadhead gave a false witness statement to the Police.
    Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.) concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.) sought to have numerous documents destroyed,along with those copies held in their London office’s of Pictet Asset Management. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael –and the barrister Charles Flint.Q.C. later had to admit in Court that the documents were genuine.

    British Parliament. Hansard .29th March 2007.
    Barry Sheerman .M.P.—quote.

    ———“ Constituents of mine have lost £2 million through fraud. The fraudster used Pictet & Cie – – a French Bank – – and Pictet Asset Management to back the fraud being perpetrated.””

    (1) It is a criminal offence for a bank to knowingly act for an undischarged criminal bankrupt in so far as it seeks to assist that criminal bankrupt in the fraudulent movement of monies. ( Money Laundering.)

    (2) It is a criminal offence for a bank to lie to the police and the bankrupts trustee in bankruptcy in so far as any knowledge of, or dealings with the bank was refuted .

    (3) A bank can be guilty of Contempt of Court if it fails to comply fully with the Courts order for discovery .

    (4) The banks contempt is further compounded if it fails to address its error after it is specifically drawn to the to its solicitors attention. ( Monty Raphael).

    (5) It is a criminal offence under the Financial Services Act to seek to destroy evidence that might be relevant to an investigation .

    (6) It is a criminal offence not to relinquish control of funds to the Trustee immediately the fact of the bankruptcy is drawn to the banks attention.

    (7) It is a criminal offence to lie or otherwise obfuscate the lawful and proper enquiries of the F.S.A.

    In the F.S.A. cover up , they concluded that there had been “ Rogue” elements in Pictet & Cie’s , London operations . They had been moved from their London Office so who was there left to prosecute. “ Unbelievable.”

    On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.

    *** We thank –David Cameron. M.P. ( Canary Wharf Speech.) Dec. 15th. 2008.

    (1) Bankers who behave irresponsibly should face professional consequences.
    (2) If anyone is found to have behaved criminally they must be prosecuted.
    (3) The F.S.A and the Serious Fraud Office should be following up every lead,
    investigating every suspect transaction .
    (4) We need to make it 100% clear –those who break the law should face
    (5) That we make sure we root out any wrongdoing that may have happened, whoever
    is involved, however high or well connected they may be.

    Ivan Pictet.
    Managing partner in Pictet & Cie Bank . — retiring -?. 2010.
    President of the Geneva Financial Centre. —stepping down -2010. ?
    World Bank.committee member.—- ?
    United Nations. Investment Committee member,
    Vice President – Global Humanitarian Forum. — redundant.2010.?
    Member of the Henokiens.
    Blackstone Group — Board Member.
    Past- President – Geneva Private Bankers association.
    Past –President – Geneva Chamber of Commerce and Industry.

    Monty Raphael. ( Peters & Peters.)
    Quote.” —- Doyen of U.K. Fraud lawyers.
    Head of Fraud and Regulatory Dept. —- stepping down, –2009.? Director of the Fraud Advisory panel.
    Member of the Law Society of England & Wales.
    International Bar Association Member.

    Written Parliamentary Questions received by the table office ..

    (1) To ask the secretary of state what steps he is taking to ensure that Swiss Banks such as Pictet & Cie do not evade criminal prosecution under EU law even when the illegal act is committed by a London based subsidiary.

    (2)To ask the secretary of state what steps he is taking to protect the rights of UK citizens who seek redress following criminal activities by Swiss banks with subsidiary offices located in London.

    On Dec 9th,2008. the complaint was sent to 150 Members of the House Of Lords and 230 Members of Parliament.
    On Aug 19th.2009.another complainants file regarding the “cover up” was forwarded to the same 380 members.

    We started our campaign in June 2008 — via the “net” to highlight our fight to get “justice”. In our second year campaign we hoped to reveal further damning evidence . Due to there being an on going Police investigation into our complaint we are at this moment unable to place dozens of documents on to the “net”. Again we thank other “ E- Mailers” for their information in relation to our campaign.

    Quote. ( America’s Top Lawyer .)
    You can be the richest man in the world with the best lawyers that money can buy but you cannot win against a man who has got nothing left to lose and is telling the truth.

    Truth Hurts.
    Ivan Pictet. Announces stepping down from Pictet & Cie. 5th Feb 2010.
    Stepping Down—President of Geneva Financial centre.—2010.
    Monty Raphael. Steps down as head . May. 2009.

    *** We note that there has been a sharp increase in Peters & Peters partners leaving to go to other practices. Moving does not alleviate them of any responsibility from any illegalities that may have occurred at Peters & Peters during their partnership tenure. From 1999 onwards.

    *** Were currently waiting to see if the Police and other Law Enforcement Bodies attempt to cover this case up like their F.S.A. counterparts. If they do –“ then watch this space.”

    We were informed that due to pressure from our M.P. that the Ministry of Justice have asked Lord Myners to investigate our claims that the F.S.A. covered up the illegal activities of Pictet Asset Management. London. We might as well have asked Ivan Pictet to investigate or someone from FRIENDS RE-UNITED.

    The consensus of opinion is the Pictet & Cie should be prosecuted , and that their U.K. banking licence should be taken away.

    Their Solicitors at Peters & Peters .London “ struck off and prosecuted..”

    *** Started campaign — June 6th.2008.
    2 .5 years —- approx 2 .5 million e-mails – – – but still no writs, injunctions or threats of litigation – – – WHY – – – because it is all true.

    *** . The bigger they are — the harder they fall.!!!

    In America —- they would have all been in prison for the last seven years.

    Nov.23rd –Nov.26th. 2010 .

    The above sent to —— 312 – – Lords – – – House of Lords.
    The above sent to — –649 – – M.P.’s – – – House of Commons._

    Full Story.

    Go to search box on “Google” and insert ( Peters & Peters/ Pictet & Cie.)

    or go to ” Google ” and insert any of the following combinations.

    Insert– ( Jacques de Saussure/ Monty Raphael.)
    Insert– ( Ivan Pictet / Monty Raphael.)
    Insert– ( Pictet & Cie /Monty Raphael.)
    Insert– ( Charles Flint. Q.C./ Monty Raphael.)
    Insert– ( Nicholas Campiche / Susan Broadhead.)
    Insert– ( F.S.A. / Monty Raphael.)
    Insert –( F.S.A. / Pictet & Cie.)
    Insert –( Hansard /Ivan Pictet.)

  • peter stimson 5th November 2010 at 10:56 am

    i thik there is a fairly basic mis-conception about how lenders price products

    Funding mortgages will mean a COF of around 2.0% in the current market, principally as mortgages are a longer term asset and the COF applied has to reflect this under transfer pricing guidance from the FSA

    If you are funding at 2.0% you you offer a 2 year fixed you need to swap out your fixed income recievables into floating – the 2 year swap is circa 1.20% at present so this puches your base costs to a minimum of 3.20% – this is before you cover any associate costs such as processing and broker fees

    If you think lender are making a ‘killing’ on low LTV prime lending you are very deluded

  • Mohammed Amin 2nd November 2010 at 12:40 pm

    Message to Dave Judgment-

    Dave, what Richard meant is that Lloyds Group borrowing at 1-2 percent, not 0.50%, it would be almost impossible to raise finance at 0.50% in this current market with the high risks associated.

    Most banks raise finance at LIBOR rate, London Inter Banking Offered Rate. Normally commercial financial organisations can borrow from each other at LIBOR, however it’s all depends on bank’s balance sheet in addition to debt/equity ratio. In other word the bank need to show they have assets or means to pay back the loan, just like a borrower has to show to the bank their means to pay back the mortgage/loan.

    I believe Richard meant borrowing at 1 or 2% rate and selling the money back at 4 to 5% plus high fees leaves Lloyds Group with huge profit margins, due to that Lloyds Group taking huge advantage of the customers at customers as well as tax payer’s expense. The tax payers are also their tax payers. Such a horrible feeling if you look at it.

    No offence to any of you guys, apologies if I have caused any offenses.

    East London, UK

  • Dave Judgement 2nd November 2010 at 11:49 am

    To Richard Lockhart at 11.37am:

    Please tell me you’re not actively involved in the mortgage industry. Because if you are, and you genuinely believe the often-repeated myth that Lloyds (or any lender) is raising funds at 0.50%, then I pity your clients.

  • jeff 2nd November 2010 at 11:39 am

    Funding strategy????????? How difficult was it to don a balaclava, apply huge margins to its interest rates and jettison its loyal partners?

  • Richard Lockhart 2nd November 2010 at 11:37 am

    Pretty easy when they are borrowing at about 1/2% ( from us) and then not lending much of our money back

    I wish I could pay off debt like this

    It makes you sick as one with an overdraft and trying to borrow for a business.

  • Kevin Grannersby 2nd November 2010 at 11:31 am

    @Samuel and/or your subs:

    ‘More quickly’ rather than ‘quicker’ please. Let’s try and retain some standards if we can!