Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Lloyds bank predicts 8% fall in house prices as its profits tumble

by October 28, 2022
October 28, 2022
Lloyds bank predicts 8% fall in house prices as its profits tumble

Profits at Lloyds Banking Group tumbled 26% in the three months to September as the UK’s largest mortgage lender steeled itself for a potential surge in defaults as it predicted house prices would fall 8% next year.

The drop in profits was much larger than the 9.5% analysts had expected, and was the result of having to put aside an extra £668m amid fears that some loan and mortgage customers could default on their debts.

Lloyds is expecting inflation to peak at 10.7% by the end of this year, and unemployment to rise to 5.5% by early 2024, further squeezing household finances.

William Chalmers, the bank’s chief financial officer, said that, when combined with rising borrowing costs, those factors were expected to push UK house prices down 8% and weigh on mortgage lending.

Analysts had expected the bank – which owns Halifax – to put aside only £285m for bad loans this quarter.

The higher-than-expected provision for defaults pushed Lloyds’ pre-tax profits down to £1.5bn in the third quarter, lower than average forecasts for £1.8bn. That was despite rising interest rates, which have increased the cost of borrowing for loan and mortgage customers but propped up a key revenue stream for banks.

Lloyds said the 19% rise in net interest income, which accounts for the difference between interest earned on loans and paid out for savings, to £3.4bn was “more than offset by the impairment charge in light of the deterioration in the macroeconomic outlook”.

Chalmers said he hoped the UK’s new cabinet under Rishi Sunak would provide stability after a turbulent period that sent mortgage interest rates to levels not seen since 2008.

“The one request would be for a period of stability … that in turn will help us to support customers, retail, commercial and insurance, navigate what will be a tougher macro environment going forward,” Chalmers told journalists on Thursday.

In the meantime, he said the bank was “likely to see a bit of a slowdown in mortgage lending” over the next year, due to higher interest rates and the tougher economic environment.

The bank’s chief executive, Charlie Nunn, tried to offer some reassurance to borrowers who have been squeezed by a rise in inflation and a rising borrowing costs. “The current environment is concerning for many people and we are committed to maintaining support for our customers,” he said.

“The group’s resilient business model and prudent approach to risk position the group well to face the current macroeconomic uncertainties while generating enhanced returns for our shareholders.”

Read more:
Lloyds bank predicts 8% fall in house prices as its profits tumble

0
FacebookTwitterGoogle +Pinterest
previous post
Actor Tim Robbins Just Admitted The Truth About ‘Safe And Effective’ Covid Vaccines: ‘I Bought Into It. I Demonized People. I Was Guilty Of Everything That I Came To Understand Was Not Healthy’
next post
CEO of London-HQ’d software firm Forterro recognised for leadership and philanthropy

You may also like

ThreatSpike raises $14M to simplify cybersecurity with unified...

June 3, 2025

Lord Sugar’s life to be adapted into major...

November 30, 2024

President Macky Sall leaves Senegal’s economy flourishing, despite...

January 12, 2024

Advantages of Dubai relocation: opinion of Mikhail Ignatiev,...

September 13, 2023

What Next? The Fear of the Career after...

May 25, 2023

Gordon Ramsay combines UK and US restaurant businesses...

February 17, 2025

Illegal Casino MyStake Owner Scandal

May 1, 2025

Google found in breach of monopoly laws over...

August 6, 2024

Unlocking Success: The Vital Role of SEO for...

December 31, 2023

Facebook to be fined £648m for mishandling user...

May 22, 2023

ThreatSpike raises $14M to simplify cybersecurity with unified...

June 3, 2025

Lord Sugar’s life to be adapted into major...

November 30, 2024

President Macky Sall leaves Senegal’s economy flourishing, despite...

January 12, 2024

Advantages of Dubai relocation: opinion of Mikhail Ignatiev,...

September 13, 2023

What Next? The Fear of the Career after...

May 25, 2023

Gordon Ramsay combines UK and US restaurant businesses...

February 17, 2025

Illegal Casino MyStake Owner Scandal

May 1, 2025

Google found in breach of monopoly laws over...

August 6, 2024

Unlocking Success: The Vital Role of SEO for...

December 31, 2023

Facebook to be fined £648m for mishandling user...

May 22, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • ‘Squad’ members ‘decide to lie and twist facts’ about Israel’s history, says prominent Arab activist

      July 15, 2025
    • Mike Waltz gears up for post-Signalgate ‘brutal’ grilling from Dems in UN ambassador hearing

      July 15, 2025
    • My Expert Midwife raises £1.6m to fuel next stage of growth and retail expansion

      July 15, 2025
    • New EV discount scheme offers up to £3,750 off electric cars under £37,000

      July 15, 2025
    • Fear of return-to-office mandates harming employee wellbeing, survey finds

      July 15, 2025
    • America has the power to lead the AI revolution – and the leadership to make it happen

      July 15, 2025

    Categories

    • Business (8,480)
    • Investing (2,121)
    • Politics (16,039)
    • Stocks (3,209)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved