Petrofac gains from Middle Eastern work

September 4, 2021 xrifalbq No Comments

first_img whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Monday 23 August 2010 8:02 pm OIL services group Petrofac said it forecast a 20 per cent rise in pre-tax profit for 2010 yesterday, thanks to a strong backlog of work and new operations in the Middle East built up over the last half year. The FTSE 100-listed firm posted revenues of $2.13bn (£1.37bn) for the last six months, which is a jump of 34 per cent on the same period in 2009.Pre-tax profit rose 42 per cent to $145.6m for the six months to the end of June, even discounting a lucrative demerger with EnQuest involving assets in the Don oil fields in the North Sea. Petrofac chief financial officer, Keith Roberts, said: ”There is more value to come in the Don investment, but it’s in the sub-surface, which is not our area of expertise. We sold our investment for a value of around £1 a share – a success story we hope to repeat in due course with our operations in Tunisia and Malaysia.”The company, whose activities range from designing and building oil and gas infrastructure to safety training, said its backlog stood at $6.9bn at the end of June and had grown by another $1.1bn in July and August.The firm has won $1.5bn of new engineering and construction orders in the year to date in Kuwait, Qatar and Iraq. KCS-content Share whatsapp Petrofac gains from Middle Eastern work Show Comments ▼ Tags: NULLlast_img read more

Hitachi mulls hard-drive IPO

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first_img Share KCS-content Tags: NULL Tuesday 31 August 2010 9:01 pm Hitachi mulls hard-drive IPO Bankers are in discussions with Hitachi about an IPO of the world’s third-largest hard-drive maker, several sources said. The stock float would be in the United States and could happen by year’s end, the sources said.Goldman Sachs has unofficially been named one of the underwriters on the IPO, the sources said.Although an IPO is the most likely scenario, Japan-based Hitachi is also considering a sale of all or part of the hard-drive unit, several sources said.Hitachi said yesterday it has not made any decisions but continues to explore possibilities. whatsapp whatsapp More From Our Partners Brave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org Show Comments ▼ HITACHI is planning an initial public offering (IPO) of its hard-drive unit and could name underwriters in early September, several people familiar with the situation said. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comAll Things Auto | Search AdsBuick’s New Lineup Is Truly StunningAll Things Auto | Search AdsElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldlast_img read more

Halfords pins hopes on promotions as sales are dented in tough market

September 4, 2021 ageoearh No Comments

first_img Show Comments ▼ KCS-content Share Thursday 7 October 2010 8:08 pm Tags: NULL HALFORDS yesterday promised to launch new promotions after reporting a sharper drop in like-for-like sales over the past quarter.The group said fewer sat nav sales and a disappointing performance in cycles contributed to a 6.3 per cent fall like-for-like sales at its shops in the quarter to 1 October.There was a 4.5 per cent drop in the previous three months, although Halfords said it still expected to grow half-year profits by around 12 per cent to between £67m and £69m. It said it remained cautious in the the trading environment and said it would reinvest recent margin gains into increasing its promotional stance. The firm added that one area of focus is likely to be in cycles after a “relatively disappointing” one per cent drop in like-for-like sales over the quarter.It said delays in the relaunch of new cycle ranges and on increased levels of competition in the market had hit its sales.The company said it had failed to take full advantage of a UK market that “remains attractive and continues to grow” but was confident of a bounce back. Halfords pins hopes on promotions as sales are dented in tough market whatsapp More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com whatsapplast_img read more

Mothercare losses narrow

September 4, 2021 pkfvddmy No Comments

first_img Mothercare said its overseas sales have overtaken British figures for the first time. The company extended plans for new overseas store openings this year from 100 to 150, which would increase selling space by a fifth. That would push the total number of stores up to 1,270 in 54 countries. But while the international business is booming, the UK remains tough. Same-store sales fell by 3.2 per cent during the second quarter to end-September while international sales rose 14 per cent. Show Comments ▼ whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times Thursday 14 October 2010 8:10 pm Sharecenter_img whatsapp Mothercare losses narrow More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org KCS-content Tags: NULLlast_img read more

Barclays and Lehman wrap up US lawsuit

September 4, 2021 tweoxwgm No Comments

first_img LEHMAN Brothers’ lawsuit against Barclays over its $1.75bn (£1.09bn) purchase of the bankrupt group’s assets draws to a close today, as lawyers on both sides submit their final arguments on whether Barclays made a secret windfall on the sale. Lehman, which filed for the world’s biggest bankruptcy in September 2008, is expected to claim Barclays made $13bn from business assets and securities added to the purchase at the last minute. Barclays will argue that the terms of the sale were fair, and were made clear in a letter given to both Lehman and the New York bankruptcy judge who approved the purchase. Judge Peck, who presided over the original bankruptcy hearings, must now re-examine his ruling and decide whether Barclays deceived Lehman and the court. If he decides Barclays must repay Lehman, the money could go towards paying the hundreds of billions of dollars still owed to creditors. Peck said in court in October that he “never approved [Barclays’] clarification letter,” adding: “There are over 12,000 docket entries. I do not know everything that is contained.”New Barclays chief executive Bob Diamond took to the stand in June to defend the bank, but was slammed by the judge for his “evasive” answers, with Peck adding: “I think that this is a witness that needs to have the leash held tightly.”Peck is expected to take until January or February to reach a decision, extending the prolonged legal battles linked to the collapse of Lehman Brothers.Last week, the same judge ruled that Bank of America must return $500m of deposits it seized from Lehman Brothers Holdings shortly after the bankruptcy. Lehman is also suing JP Morgan for allegedly siphoning off assets during the early stages of the bankruptcy, which the bank denies. Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof KCS-content Share Monday 22 November 2010 6:05 am whatsapp whatsappcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”WanderoamSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldHistorical GeniusHe Was The Smartest Man Who Ever Lived – But He Led A Miserable LifeHistorical Genius Barclays and Lehman wrap up US lawsuit Show Comments ▼ Tags: NULLlast_img read more

Kesa profit is up but Comet falling behind

September 4, 2021 dejkrcbh No Comments

first_imgWednesday 8 December 2010 7:25 pm Show Comments ▼ whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen Herald KCS-content Tags: NULL whatsappcenter_img Share Kesa profit is up but Comet falling behind ELECTRICALS group Kesa yesterday reported a 52 per cent rise in profit – helped by sales of televisions for the World Cup in the summer.But losses at its UK arm Comet increased to £5.4m from £1.5m, as the bill for store revamps and tough trading conditions took their toll.The company said it would introduce ranges of new electrical accessories as well as smaller electrical goods in an attempt to reverse the fortunes of the UK’s second largest electricals retailer.Revenues at Kesa rose by 4.1 per cent overall with profit at its French business Darty up 16 per cent, in the six months to 31 October.Meanwhile internet sales jumped 23 per cent across the group.Darty operates in ten countries and is the market leader in France.However in the UK competition from Dixons Retail, which owns Currys and PC World, has been strong, making life tough for Comet.Kesa chief executive Thierry Falque-Pierrotin said the company was expecting tough UK conditions into next year, while he was pinning hopes for Christmas sales on iPads and designer coffee machines. “Things are diffIcult but we have a plan for Comet. Ît’s obviously a tough market in the UK. “We think the iPad and other tablets will be strong at Christmas.”The company hiked its interim dividend by 15 per cent.It also said it had not seen its sales hit by the arrival in the UK of US electricals giant BestBuy. Falque-Pierrotin also played down any chance the company could be broken up after rumours that major US shareholder Knight Vinke would push for such a deal. More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comWhy people are finding dryer sheets in their mailboxesnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com last_img read more

JP Morgan confirms London as its EU headquarters

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first_img whatsapp Share alison.lock INVESTMENT bank JP Morgan has confirmed it will base its European headquarters in London, at 25 Bank Street in Canary Wharf, from 2012.The announcement is a major vote of confidence in London as a leading financial services centre and will come as a relief to policymakers.The bank has paid £495m to acquire more than one million square feet of floor space that will host its entire investment banking division, currently spread over four buildings in London.“This acquisition is a long-term investment and represents part of our continued commitment to London as one of the world’s most important financial centres,” said Jamie Dimon, chairman and chief executive of JP Morgan. Boris Johnson, Mayor of London, said the decision was “a tremendous coup for London and for the UK, which rightly reflects the prevailing confidence in the capital.”“Banking is one of the few global industries in which we truly excel,” he said. “JP Morgan’s commitment to London will help ensure the capital retains its position as a banking powerhouse, which drives the UK economy and attracts the brightest and best stars from the financial world.”Construction work will start immediately to make the building ready for the bank’s use in 2012.JP Morgan joins other firms such as KPMG, Fitch, Mastercard and Moodys at Canary Wharf. Its additional staff means the working headcount of Canary Wharf will rise above 100,000 for the first time, the former owner, Canary Wharf Group said. Monday 20 December 2010 3:56 am Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof whatsapp Show Comments ▼ JP Morgan confirms London as its EU headquarters Tags: NULLlast_img read more

Submissions to Vickers

September 4, 2021 hhxneikr No Comments

first_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryBetterBe20 Stunning Female AthletesBetterBeLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm BARCLAYSSaid a forced split would harm the stability of the system. “There is little empirical evidence to suggest that material structural change would enhance financial stability,” it said, warning that the UK economy would also suffer if the financial sector is curtailed.RBSRBS sought to quantify the benefits of the universal model, estimating that sharing back-office functions and funding sources across the group saved it £3.5bn-£4.8bn each year.HSBCThe bank said it “does not believe that proprietary trading is a necessary part of a customerfocused universal bank”. Said that its own investment banking activities are driven by what its clients need, such as legitimate hedging of risks, and says it would never seek to merely trade off its own book. BRITISH BANKERS ASSOCIATIONArgues that splitting up the country’s banks would harm Britain’s role as a leading global financial centre and prove to be too costly to undertake.NATIONWIDESaid it would be better to ringfence banks’ retail deposits from their investment banking activities, forming separate subsidiaries for these different units, rather than a full split.CITIGROUPCitigroup cautioned the commission not to contribute to the UK falling too far out of step with the rest of the world in its financial reforms, urging it to instead help refocus the public debate on banking onto the UK’S long-term competitiveness.LLOYDS BANKING GROUPSubmitted a 100-page response to the commission warning that inadequate regulation rather than the growing size of banks was responsible for the crisis. The bank supports the principle of living wills but disagrees with a “bail-in” or separating more risky operations. SIR GEORGE MATHEWSONThe man behind RBS’s £20bn merger with NatWest called on regulators to split the banks and hive off RBS’s insurance business to make the bank more stable. He also said Lloyds should be forced to untangle itself from HBOS in the name of increasing competition in the sector. KCS-content Share Show Comments ▼ Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautCheese Crostini: Delicious Recipes Worth CookingFamily Proof Wednesday 26 January 2011 9:16 pmcenter_img whatsapp whatsapp Tags: NULL Submissions to Vickers last_img read more

DMGT revenue is up despite local slump

September 4, 2021 pkfvddmy No Comments

first_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’Sportsnaut whatsapp whatsapp KCS-content DMGT revenue is up despite local slump Share Tags: NULL Show Comments ▼ Wednesday 9 February 2011 7:49 pm Daily Mail & General Trust (DMGT) saw its revenue rise five per cent after its business to business (B2B) operations outweighed another sluggish quarter for local advertising.The results were in line with forecasts but its shares dipped almost three per cent to 577p. Advertising revenue at the group’s national titles rose six per cent in the quarter but slowed to just two per cent in January. Regional ad revenue fell six per cent in the quarter.Its B2B business, including its separately listed Euromoney unit, saw sales rise 11 per cent.Overall revenue climbed five per cent on an underlying basis to £497m. Its net debt stood at £910m, up from £862m at the end of the previous quarter. “We remain cautious about the medium-term outlook, given the external economic environment. Our focus will remain on investment to drive organic growth, while continuing to seek to improve operational efficiency and to reduce debt,” said a spokesman.DMGT chief executive Martin Morgan said the firm has no ambitions to buy up any further regional titles but might be prepared to sell if the right offer arises.He said: “We are not interested in putting fresh capital into that sector but we are open to any worthwhile approaches concerning consolidation. Our focus will remain on investment to drive organic growth.” last_img read more

Project Merlin has to avoid mistakes of past

September 4, 2021 bbcvjqyg No Comments

first_img Project Merlin has to avoid mistakes of past KCS-content Sunday 13 February 2011 10:43 pm whatsapp whatsapp LAST week, George Osborne announced to the House of Commons that the four largest UK banks – HSBC, Barclays, RBS and Lloyds – have finally signed up to what has been dubbed project Merlin.There is no doubt this agreement is good news if it starts to rebuild the banks’ relationship with the government and wider society. However, some of the stipulations regarding lending to SMEs – £190bn must be lent to businesses this year, £76bn to smaller businesses – give cause for concern. Of course lending to SMEs is important; they will a key driver in economic recovery and must be given every opportunity to succeed and grow.Moreover, banks can only make a profit if they lend money to a range of borrowers. The interest rate charged and the conditions of the loan vary with the bank’s analysis of the degree of risk taken by making the loan.If a bank forgoes making a profit by declining to lend then it either views the inherent risks as too great, or it has more than adequate balance sheet exposure to that type of business.After the crisis, the banks were rightly criticised for adopting an overly relaxed attitude to lending and a failure of risk management in their quest for ever-increasing profits, resulting in huge losses that nearly caused a financial meltdown.It also became clear that SMEs were overly reliant on bank lending as a source of finance and did not have sufficiently robust business models to weather a sudden and unexpected change in circumstances. And yet we are now faced with the situation that banks are being coerced to lend to businesses they have already rejected as too risky or as not having a sustainable business plan, and to encourage SMEs to take on more debt. This conflict was highlighted when the Chancellor announced that the level of lending under project Merlin is significantly higher than the level banks had originally been considering.Project Merlin also stipulates that “chief executives of each bank, along with relevant business area leaders will have their pay linked to performance against the SME lending targets.”This again creates a perverse incentive we witnessed in pre-crisis times. Management were paid to meet quantitative lending targets with little thought on the quality of the lending.If you were successful you pocketed the bonuses and hoped you were promoted before the defaults started to come in, leaving it to your successor to sort out.We must be careful not to repeat the mistakes of the past.Stuart Fraser is the Policy Chairman at the City of London Corporation Share Show Comments ▼ More From Our Partners Supermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org Tags: NULLlast_img read more