The latest results from Britain's banks have triggered the usual row over bonuses and yet more "one-off" charges for various scandals but also some good news.
Lloyds managed a pre-tax profit of £1.8bn last year and announced its first dividend since its £20bn state bailout in 2008. Barclays saw a 12% increase in underlying profits to £5.5bn last year.
However, after a £750m provision for possible fines relating to forex-market rigging, and other one-off costs, the bank registered a small net loss. And both Barclays and RBS are still struggling with their investment banking arms.
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
What the commentators said
"Financially, Jenkins is justified in saying the bank is healthier than it has been since the crisis." But pay per banker in the investment bank division has risen now that 200 staff have been cut. And the bills for misconduct and alleged fraud "just keep on rising".
Only more cuts will ensure that the investment bank produces returns to beat its cost of capital, said Allister Heath. This means Barclays has reached a "turning point". For the past 31 years, it has "consumed a vast amount of capital" trying to build a world-class investment bank.
But despite "coming tantalisingly close", it hasn't succeeded in building a viable alternative to Goldman Sachs or JP Morgan. RBS is also finding it too expensive, added The Guardian's Jill Treanor, so it's now slimming down to a presence in 13 countries from 51 in 2009.
There will come a time, warned Chirantan Barua of Bernstein, when "we need liquidity in this country and we won't have a British broker-dealer".
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
-
Banks pass stress test
Features Britain’s seven biggest lenders have passed the second round of annual stress tests – but how resilient are the tests?
-
Barclays gives its boss the boot
Features Barclays has fired its CEO Antony Jenkins after three years on the job. He will be replaced by the chairman, John McFarlane, on an interim basis.
-
New technology is threatening the big banks, but there's one that's still worth buying
Features Mobile and online banking are making traditional bank branches obsolete. But one bank in particular is still a buy, says Matthew Partridge.
-
BNP and Barclays misbehave
News Regulators in America have levied heavy fines on the banks for breaching its rules.
-
Don’t be tempted to buy banks – here are two better options
Features Bank shares might look cheap right now, but don't be tempted. There are better places to put your money, says Ed Bowsher. Here, he picks two stocks to consider instead.
-
Barclays: bonuses up, profits down
News Despite falling profits at Barclays, the bank has seen fit to raise employee bonuses.
-
Barclays looks cheap - but don’t touch it
Features Barclays shares have fallen to the point where they’re now looking cheap. But that doesn’t mean you should buy them. Ed Bowsher explains why, and looks at what to buy instead.
