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Monday 19th of July 2010

News Tag: write-downs

March 31, 2010

Bank of Ireland sees no end to economic crisis

by Kay Murchie
The Bank of Ireland has today reported a loss of €3 billion (£2.6 billion) in the first nine months of its financial year, with write-downs totalling €4 billion. In a statement, the bank said: "Revenues remain under pressure, in particular due to higher funding costs as we continue to extend the maturity profile of our wholesale funding." It also said ...

May 5, 2009

UBS reports first quarter loss of SwFr1.98bn

by Kay Murchie
UBS, which is Switzerland's largest, bank, has reported a first quarter loss of SwFr1.98 billion (£1.2 billion). The bank said the losses were attributed to write-downs on risky investments. However the loss was less than the SwFr9.5 billion reported for the fourth quarter of 2008. The Swiss bank is among one of the worst hit victims of the sub-prime crisis due ...

March 23, 2009

Dunfermline Building Society facing collapse

by Peter Charalambous
 Dunfermline Building Society facing collapse
Scotland's largest building society is set to be on the brink of collapse as the UK government has announced that it is preparing a £60 million bail-out. Scottish Secretary Jim Murphy said that the Government will do all that it can to protect people’s money in what has been nicknamed as the Scottish Northern Rock. Dunfermline building society has over 34 branches and ...

February 9, 2009

Barclays reports 14% fall in profits

by Kay Murchie
Barclays Bank has announced a full year pre-tax profit of £6.08 billion for the 2008 year - this represents a fall of 14% compared with the 2007 year. However, the profits still exceeded analysts’ expectations. The bank has also announced £5.4 billion of write-downs (nearly double a year earlier) and has cancelled its final dividend and said executive directors will not be ...

February 2, 2009

Barclays shares plunge as credit rating cut

by Kay Murchie
Shares in Barclays have plunged 9% to 96p this morning after Moody’s downgraded the bank’s long-term debt rating from Aa1 to Aa3, while its financial strength rating was cut from B to C. Moody’s said it expects the bank to announce considerable further losses on credit related write-downs. Barclays stock has been hit hard over the last month with shares falling 31% ...

November 14, 2008

RBS to axe 3,000 jobs

by Kay Murchie
Royal Bank of Scotland (RBS) adds to the thousands of job losses in the UK this week by announcing that it is to axe 3,000 staff from its global banking and markets division. The news of the job losses follows a week of cuts after JCB, one of the largest construction equipment manufacturers in the world, is set to axe almost 400 jobs. Leyland, ...

November 4, 2008

RBS hit by further write-downs

by Kay Murchie
Royal Bank of Scotland (RBS) has today announced an 8% fall in operating profits and stated that the economic slowdown will affect its financial results for the final quarter of the year. Furthermore, the bank has announced further write-downs on credit assets totalling £206 million, on top of the £5.9 billion it reported in the first six months of the year. RBS, which is ...

November 3, 2008

Lloyds TSB/HBOS merger details unveiled

by Kay Murchie
The Lloyds TSB/HBOS merger looks set to proceed after both banks have announced plans to raise up to £17 billion through the Government's rescue scheme. Today, Lloyds said it plans to raise £4.5 billion from investors with the support of the Government and will offer the Government preference shares worth £1 billion. Meanwhile, HBOS said it plans to raise £8.5 billion through investors and ...

August 21, 2008

Standard & Poor: Banks should prepare for second wave of credit crunch losses

by Kay Murchie
Credit rating agency, Standard & Poor, has warned that a recovery in the banking industry is at least a year away. According to the agency, US and European banks are entering a second phase of credit crunch related losses. The warning comes as investment bank, Lehman Brothers, had its forecast slashed by analysts after predicting it ...

August 8, 2008

RBS posts second-biggest loss in UK banking history

by Kay Murchie
Britain’s second-largest bank, Royal Bank of Scotland (RBS), has today posted a first-half pre-tax loss of £691 million - its first loss in 40 years and the second-biggest loss in UK banking history. Lloyds TSB holds the record for the first-biggest loss when it posted a £715 million loss in 1989, primarily due to difficulties in Latin America. RBS, which owns ...

August 7, 2008

Barclays posts 33% fall in first-half profits

by Kay Murchie
Barclays Bank has today revealed that pre-tax profits fell 33% in the first six months to the end of June following more write-downs. Barclays made £2.75 billion, compared with £4.1 billion in the same period last year. John Varley, chief executive of Barclays, described the results as disappointing and apologised to shareholders who have had to endure a lot. Mr Varley warned ...

July 31, 2008

HBOS pre-tax profits plunge over 70%

by Kay Murchie
The credit crisis and weakening economy has led to HBOS posting a huge slump in profits. HBOS said pre-tax profit fell from £2.99 billion in the first half of 2007 to £848 million compared with the same period a year ago. Bad debts increased 36% to £1.31 billion as customers defaulted on loans. Furthermore, HBOS said its underlying profits before tax, including ...

July 20, 2008

Second quarter results at Citigroup better than expected

by Kay Murchie
Citigroup, which is America’s largest bank, has posted a second quarter loss of $2.5 billion (£1.25 billion) as a result of further write-downs of $11.7 billion due to the credit crunch and mortgage related assets. Despite the loss, the results were better than Wall Street was expecting and shares gained 7.7% on Friday. Its shares have halved in the last ...

July 17, 2008

JP Morgan Chase hit by write-downs

by Kay Murchie
Investment banking giant, JP Morgan Chase, revealed that second-quarter profits fell 52% as it suffered a £550 million ($1.1 billion) loss on mortgage-related write-downs. Net income at the third-largest US bank fell to $2 billion compared with $4.23 billion a year earlier. Revenue fell by 3% to $18.4 billion, above analysts expectations of $16.6 billion in turnover for the second quarter. So ...

July 1, 2008

Management overhaul at UBS

by Kay Murchie
Swiss investment bank, UBS, has announced the resignation of 4 of its 12 board members as it attempts to recover from losses linked to the credit crunch. The overhaul sees directors Stephan Haeringer, Rolf Meyer, Peter Spuhler and Lawrence Weinbach step down in October. The banking giant said nominations for their replacements will be announced well before the shareholder meeting on October 2nd. The bank, ...

June 23, 2008

Further job cuts at Credit Suisse

by Kay Murchie
Swiss investment bank, Credit Suisse, has announced plans to axe 75 jobs in in its investment bank and support services division in the UK. Switzerland’s second largest bank said challenging market conditions and projected staffing levels needed to meet client requirements has resulted in a reduction in headcount. The bank, which has its UK operations headquartered in London’s Canary Wharf, has already ...

May 13, 2008

HSBC reveals further write-downs

by Kay Murchie
HSBC, the UK’s largest bank, has announced it is to write-down a further $2.6 billion (£1.3 billion) in addition to the $12.2 billion of write-downs last year. However, profit in the first three months of 2008 exceeded that of a year ago, as growth in Asia helped counter some $5 billion in hits from bad debts on the US sub-prime mortgage crisis. Michael Geoghegan, ...

April 21, 2008

Job losses confirmed at Cititgroup

by Kay Murchie
As the credit squeeze continues, Citigroup, the world's largest bank, has announced its second consecutive quarterly loss and has confirmed 9,000 job cuts. The US investment bank made a loss of $5.1 billion (£2.7 billion) in the first quarter, however, this was less than the $9.8 billion loss reported in the final quarter of last year. The results included around $12 billion of ...