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Lloyds' profit doubles but Brexit worries weigh

Wednesday, October 25, 2017 - 01:36

Lloyds Banking Group posts a rise in third quarter profit but misses forecasts while shares in Monte dei Paschi soar as the Italian banks returns to the stock market. Silvia Antonioli reports.

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It's not an easy ride for Lloyds. Shares in Britain's biggest retail bank dropped after it missed earnings forecasts for its third quarter. Profit - at just below 2 billion pounds - has more than doubled from the same period last year but that was mostly because this time the bank did not set aside cash to cover charges for misselling insurance protection policies. Since re-emerging from the 2008 banking crisis that pushed the government to bail it out, Lloyds has followed a low-risk business model focused of improving the quality of it assets. And there are signs of improving profitability: the lender said it expects to boost the rate at which it generates capital by the end of 2017 But investors were wary of its domestic focus as they worry about a weaker British economy Some analysts think banks with great global exposure might be a safer bet. SOUNDBITE "I would see Santander as an example of a global bank that will offer excellent long term leverage to global growth trends and be much more wary of some of the banks in Italy and in Germany where I do believe there is more to be done." Shares in Italian lender Monte dei Paschi soared as it returned to the stock market after 10 months halt. But the price remains well below that paid by the state when it bailed out the bank earlier this year. implying a large loss for taxpayers. ///

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Lloyds' profit doubles but Brexit worries weigh

Wednesday, October 25, 2017 - 01:36