Despite announcing losses of £200 million, Lloyds TSB has revealed what will be seen in the banking sector as good news, with the bank’s losses less than had been feared. The losses relate to the US sub-prime mortgage sector, though with banks such as UBS and Citigroup announcing losses exceeding £5 billion, the relatively small losses announced by Lloyds has come as a relief to many in the banking sector.
Part of the reason for the losses not being bigger is that Lloyds has no direct exposure to US sub-prime asset backed securities and has very little indirect exposure to collateralised debt obligations. Consequently, although the banking sector has been hit very hard, Lloyds has got off lightly.
Lloyds’ share price rose following the announcement, up 3.5 per cent to 505.5p in just a single afternoon. Lloyds looks set to have a successful year, having also announced that profits are set to be 11 per cent up for the year.
Lloyds Shares Rise After Bank Limits Losses
Lloyds Shares Rise After Bank Limits Losses
Mon, 17 Dec 2007
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