Bank profits... state ownership... dividends etc..
Discussion
Just having an idle wonder about stuff I dont fully understand...
Since large chunks of several major banks were snapped up by the state in recent times of trouble the banks have started to turn a rather healthy profit again (probably not what they once were, but 1.1billion in 6 months from RBS isnt too shoddy)
Do the government get a nice dividend? (if the bank is actually paying dividends at the moment) by my fag packet calculations, as one of 26 million tax payers in the UK about £3 and a bit of that is mine! (based on 84% state ownership)..
Of course all of that wouldnt go to dividends, the bank is going to retain some, or all of it to bolster their reserves.
But ultimately, if the state continues to own a large chunk of a profitable business I'm guessing they are due for a healthy windfall as and when the shares are sold on again, or the banks are broken up and shares sold, or they hang on to them and collect dividends.
if the banks continue to recover like this it might prove to be something of a shrewd investment, no?
Since large chunks of several major banks were snapped up by the state in recent times of trouble the banks have started to turn a rather healthy profit again (probably not what they once were, but 1.1billion in 6 months from RBS isnt too shoddy)
Do the government get a nice dividend? (if the bank is actually paying dividends at the moment) by my fag packet calculations, as one of 26 million tax payers in the UK about £3 and a bit of that is mine! (based on 84% state ownership)..
Of course all of that wouldnt go to dividends, the bank is going to retain some, or all of it to bolster their reserves.
But ultimately, if the state continues to own a large chunk of a profitable business I'm guessing they are due for a healthy windfall as and when the shares are sold on again, or the banks are broken up and shares sold, or they hang on to them and collect dividends.
if the banks continue to recover like this it might prove to be something of a shrewd investment, no?
You are quite correct
Even the worst of the state owned banks (Northern Rock) is doing far better than seemed possible at the height of the credit crunch. On the rest the taxpayer should see a healthy return on their investment.
Puts some of the banker bashing in the media into persepective!
Even the worst of the state owned banks (Northern Rock) is doing far better than seemed possible at the height of the credit crunch. On the rest the taxpayer should see a healthy return on their investment.
Puts some of the banker bashing in the media into persepective!
williamp said:
Of course, as they are 84% owned by the british public, should they make a profit in the first palce? Are their interest rates too high if they can make a profit?
That profit does, afterall come from the british public... who own it.
Yep, they should follow the route of British Leyland and slowly turn their P&L into the red. Note: sarcasm.That profit does, afterall come from the british public... who own it.
No dividends being paid by any of the bank's in which the Govt has a stake. Nor will there be for some time. Profits will go towards improving capital ratios.
Oh come along..... that really is parroted tabloid nonsense.
These are international institutions. A healthy chunk of their profits come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
williamp said:
That profit does, afterall come from the british public... who own it.
Oh come along..... that really is parroted tabloid nonsense.
These are international institutions. A healthy chunk of their profits come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
williamp said:
Of course, as they are 84% owned by the british public, should they make a profit in the first palce? Are their interest rates too high if they can make a profit?
That profit does, afterall come from the british public... who own it.
From a treasury point of view it's a bit like a particularly stealthy tax I guess. We already have state owned savings and invesments which are pretty sThat profit does, afterall come from the british public... who own it.
t at the best of times.Rocksteadyeddie said:
These are international institutions. A healthy chunk of their losses come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
EFA. If RBS hadn't embarked on it's European and North American ventures they would probably have been okay. williamp said:
Of course, as they are 84% owned by the british public, should they make a profit in the first palce? Are their interest rates too high if they can make a profit?
That profit does, afterall come from the british public... who own it.
Most of RBS' profit appears to come directly from me. We got a letter the other day saying the biz credit cards were going up to 24.9% That profit does, afterall come from the british public... who own it.
. Expect a sharp fall in the next half year figures cos I shall be telling them to shove their cards up their highly profitable arses
Damned if they do damned if they dont.
Criticised 3 years ago for lending too freely, criticised today for not lending enough.
Profit seems to be a dirty word when applied to banks at the moment.
Hell, if RBS' share price returns to early 2007 levels we'd be able to pay off the defecit in one fell swoop.
Criticised 3 years ago for lending too freely, criticised today for not lending enough.
Profit seems to be a dirty word when applied to banks at the moment.
Hell, if RBS' share price returns to early 2007 levels we'd be able to pay off the defecit in one fell swoop.
Edited by Marf on Friday 6th August 10:30
Marf said:
Hell, if RBS' share price returns to early 2007 levels we'd be able to pay off the defecit in fell swoop.
Would have to be sold off in bits over a number of years??
Timmy35 said:
Rocksteadyeddie said:
These are international institutions. A healthy chunk of their losses come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
EFA. If RBS hadn't embarked on it's European and North American ventures they would probably have been okay. It was the corporate equivalent of buying a black bin liner off a man with a microphone on a market stall.
Rocksteadyeddie said:
Timmy35 said:
Rocksteadyeddie said:
These are international institutions. A healthy chunk of their losses come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
EFA. If RBS hadn't embarked on it's European and North American ventures they would probably have been okay. It was the corporate equivalent of buying a black bin liner off a man with a microphone on a market stall.
NoelWatson said:
Rocksteadyeddie said:
Timmy35 said:
Rocksteadyeddie said:
These are international institutions. A healthy chunk of their losses come from overseas. Of those derived in the UK a further proportion will be indirectly derived from overseas.
EFA. If RBS hadn't embarked on it's European and North American ventures they would probably have been okay. It was the corporate equivalent of buying a black bin liner off a man with a microphone on a market stall.
davido140 said:
Marf said:
Hell, if RBS' share price returns to early 2007 levels we'd be able to pay off the defecit in fell swoop.
Would have to be sold off in bits over a number of years??
Its not like you have 10 people holding 8.4% each who are all trying to offload the shares and would be undercutting one another to get their shares sold.
From yesterdays (admittedly pro-banking) City AM:
BAILOUT MAKES A PROFIT
My story of the day: The forecast from the Centre for Economics and Business Research that the banking bailout will yield a profit of £19bn for the UK taxpayer. This newspaper has been predicting this for ages – yet hardly anybody is aware of the facts. This is not to claim that bailing out banks was a good thing – in fact, it was an economic outrage caused by a defective macroeconomic policy and regulatory system – merely that taxpayers’ weren’t ripped off (they actually ended up exploiting those banks’ original shareholders).
If the bailout cost nothing and even made a profit, why is the deficit so high? The answer is general government overspending, not handouts to the City. The sooner people understand this, the better for everybody.
http://www.cityam.com/news-and-analysis/allister-h...
And the CEBR article:
http://www.cebr.com/?p=256
BAILOUT MAKES A PROFIT
My story of the day: The forecast from the Centre for Economics and Business Research that the banking bailout will yield a profit of £19bn for the UK taxpayer. This newspaper has been predicting this for ages – yet hardly anybody is aware of the facts. This is not to claim that bailing out banks was a good thing – in fact, it was an economic outrage caused by a defective macroeconomic policy and regulatory system – merely that taxpayers’ weren’t ripped off (they actually ended up exploiting those banks’ original shareholders).
If the bailout cost nothing and even made a profit, why is the deficit so high? The answer is general government overspending, not handouts to the City. The sooner people understand this, the better for everybody.
http://www.cityam.com/news-and-analysis/allister-h...
And the CEBR article:
http://www.cebr.com/?p=256
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff