Shares in UK financial giant Lloyds Banking Group, which is 41 per cent-owned by the UK tax payer, took a hit following reports that the company is about to slash its share of the UK mortgage market by three percentage points.
The plans, which would see the bank's share reduced to 25%, are said to have been announced by Chief Executive Antonio Horta-Osario during a call with analysts on Tuesday.
Simultaneously, Horta-Osario is planning to build the bank's share of retail deposits by two percentage points to 25%, to balance it with the firm's mortgage market share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
A Lloyds spokeswoman is reported to have said: "The retail deposit market continues to be highly competitive, and the costs of deposits remain high. However, given that retail deposits remain cheaper than wholesale funding, we see it as sensible to continue to grow our deposits further."
The call followed the announcement of Lloyds's first-quarter results which revealed the company was back in the black despite huge numbers of payment protection insurance (PPI) claims.
Pre-tax profits came in at £288m compared to a massive loss of £3.47bn in the first three months of last year.
On Wedneday the share price fell 4.11% to 32.22p by 15:08.
NR
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
