Latest news with #LloydsBank
Yahoo
3 days ago
- Business
- Yahoo
Scottish Widows owes it to the UK taxpayer to invest in British companies
The cost to the Treasury of the generous tax relief afforded our pensions is about £50 billion a year. Should pensions get that tax break from the UK government if the funds won't even invest in the UK? The question arises following a recent move by Scottish Widows, a giant fund group that manages assets of £225 billion and is part of Lloyds Bank, which was bailed out by the government to the tune of £20 billion during the 2008 financial crash. We got most of that bail out back, eventually, but still, it owes us. Morally and actually. And the government is desperate for pension funds to put more money into UK equities, to support growth, the economy and as a show of faith. Instead, Scottish Widows plans to cut the exposure to UK equities in at least some funds from 12% to 3%, the Financial Times reports. Scottish Widows says this is part of a 'more globally diversified approach'. It isn't alone in this move, in fact it is possibly behind the curve. Big funds have been moving money out of the UK to get a piece of the racier US markets for some time. It is tempting to think that Scottish Widows, around since 1815, following suit is a sure sign that the market is about to turn. That aside, this is a blow to chancellor Rachel Reeves, who is also desperately seeking sources of tax income. Since the amount pension funds invested in the UK has fallen from 50% of assets in 2000 to just 4% now, she might think the funds are asking for trouble. SCM Direct, the online wealth management firm, wrote to Reeves a year ago suggesting that she: 'Introduce a requirement for pension funds to maintain at least 20% of their equity exposure in UK listed equities to retain their tax-advantaged status. This would simply return pension funds to their UK equity allocation as recently as 2017.' Reeves didn't reply – too busy tweaking her CV perhaps – but maybe it is time for her to have another look at this notion. Alan Miller at SCM asks whether the move by Lloyds is 'a prime example of rear-view mirror investing or given their new bias to anything US maybe a name change to US Widows is appropriate? Why should UK pension funds keep their UK tax status when they can't be bothered to invest more than a few beans in the UK?' Nicholas Hyett, Investment Manager at Wealth Club, says: 'As things stand, pension managers' primary duty is to achieve the highest possible return for their investors for a given level of risk. Any manager who unilaterally lets other priorities get in the way of that wouldn't be doing their job properly, whether those other priorities are supporting the UK stock market or cutting carbon emissions. 'However, it's up to government to set the terms on which pensions reliefs are available. Pensions are by far the largest pool of private capital in the UK – and it's not unreasonable that the government wants to tap that to support UK plc. 'That may not be in the best interest of pensioners, but then lots of pension policy isn't – annual allowances, limits on tax free lump sum withdrawals and tax on pension withdrawals are all bad news for pension savers but benefit the taxman and therefore society more widely.' Total UK pension assets are about £3.2 trillion. The 4% of that in UK equities is £128 billion. If all funds followed the Scottish Widows approach, that would see about £96 billion desert the UK stock market. That's a serious amount of money, enough even to trigger a crisis. Miller says: 'For context, UK pension funds have already withdrawn £400 billion+ from UK equities since 2000, and another £96 billion would accelerate this trend catastrophically.' The UK already has the lowest domestic equity allocation among major economies (4% vs. Australia's 37.7%) -- further cuts would deepen this disparity. I think Scottish Widows is pushing its luck. The Chancellor should have a word. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
3 days ago
- Business
- Daily Mail
Lloyds Bank wouldn't let me withdraw £600 in branch and insisted I use a cash machine outside
I went to my local branch of Lloyds Bank in Caerphilly to withdraw £600 in cash at the counter only to be told that due to new rules I had to go to the outside cash machine. If I wanted to be served at the counter I would have to request withdrawal of £800 minimum. The member of branch staff said all customers had been notified of this new procedure in March 2025. Looking at the current Lloyds website it states there is no limit for withdrawals over the counter just give advance notice if the request is for over a certain amount. Checking on my correspondence from Lloyds Bank I can find no notification of this change of policy. I wanted to withdraw it from the counter, as I felt vulnerable getting out such a large sum of cash outside - and I didn't think I'd be able to withdraw such a large sum from an ATM anyway. Helen Kirrane of This is Money replies: Lloyds is one of the few banks which does not have a maximum limit on how much cash customers can withdraw from the counter, according to advice it gave This is Money earlier in the year. Customers need to be able to provide identification if they are withdrawing lager sums. It sounds like you were given the wrong information by the member of branch staff at the counter. Lloyds has not changed the amount that can be withdrawn at the counter - or set a new minimum. What it has changed is the amount customers can withdraw from the ATM if using a Lloyds debit card. Customers can now withdraw amounts up to £800 in cash at the ATM and this has steadily been increasing. Previously, the amount which could be taken out at the ATM was £500. But you should still have been allowed to withdraw an amount of less than £800 at the counter without being made to go outside to use the ATM, which you said you did not feel comfortable doing for such a sum of cash. I don't blame you. Lloyds' branch staff will let customers know the options available to them for carrying out banking with it, but I am surprised a staff member thought the best way for you to withdraw £600 was to go outside and do it at the ATM. A Lloyds bank spokesman said: The amount you can withdraw at a cash machine is £800 per day if you hold a Lloyds Bank debit card. Helen Kirrane adds: Lloyds said you should have been able to withdraw the money over the counter. Earlier this year we asked the big high street banks how much customers can withdraw in cash at the counter. HSBC does not have a maximum limit for how much cash a customer can withdraw from the counter, providing it has the amount you require in cash at your branch. For cash withdrawals up to £5,000 you will not need to give any advance notice to Santander to get your money. Customers can withdraw amounts up to £5,000 over the counter during its opening hours on Monday to Friday – though not on Saturdays. There's no limit to how much money you can take out over the counter in a Barclays branch – as long as you've got the money in your account. Withdrawals up to £2,000 can be made at a Nationwide branch counter without giving prior notice to the building society.
Daily Mail
4 days ago
- Business
- Daily Mail
British firms are already reaping the benefits of AI, says Lloyds
British firms are set to ramp-up investment in artificial intelligence over the next year, with four in five early adaptors already enjoying a boost to productivity, according to Lloyds Bank. Almost 60 per cent of firms are already embracing AI, according to the bank's Business Barometer survey, 82 per cent of which say it has boosted productivity. Productivity was also the biggest driver of AI investment (46 per cent), Lloyds said, followed by profitability (41 per cent) and the need to compete with larger rivals (31 per cent). Over half (56 per cent) of British businesses intend to make fresh AI investments over the next year, and a quarter of 'non-adopters' plan to start using the technology for the first time. However, only around one in six firms (17 per cent) expect to create new AI-specific roles at their organisation. Among those who have not started using AI, 42 per cent said the biggest barrier was the cost of technology, while 32 per cent claimed it was the absence of AI-specific skills. Boost: More than four in five UK companies utilising artificial intelligence say it has improved their productivity, according to a Lloyds Bank survey To raise the chances of increasing AI investment, 48 per cent of companies suggest having a better understanding of AI and how it could benefit them. Hann-Ju Ho, senior economist at Lloyds, said: 'AI is enhancing two pillars of business growth: productivity and profitability. 'Our data suggests that up to a quarter of businesses not currently using AI will adopt it by this time next year, with significant degrees of follow-on investment planned from current adopters. 'As businesses explore how to unlock more of AI's benefits, they will look to others for inspiration and support. 'Collaboration and experience-sharing will play a central role in fully capitalising on the technology's potential while keeping up to date with the latest iterations.' Last year, Microsoft estimated that the UK could add £550billion to its gross domestic product by 2035 by embracing AI and cloud technology, equivalent to a 2 per cent rise in annual growth rates. By comparison, delaying the rollout of AI over the coming five years could cost the country £150billion. The US tech giant said AI had the potential to accelerate the development of new science and technology, create entirely new products and services, and save time for individual workers. Britain's AI market was valued at £72.3billion in 2024, the world's third-largest after the United States and China, according to the UK Government. Prominent names in the British AI sector include chipmaker Graphcore, Wayve, which makes technology for self-driving vehicles, and Deepmind, whose parent company is Google owner Alphabet.
Yahoo
4 days ago
- Business
- Yahoo
Ultimate Finance refreshes brand identity to boost growth
Asset-based lender Ultimate Finance has announced the launch of its updated brand identity as part of its growth plans. The UK-based company stated that since introducing its current business strategy and brand in 2020, it has achieved 'significant growth' in both its loan portfolio and market presence. Ultimate Finance's choice to invest in the brand supports its ongoing product and growth strategy. Ultimate Finance chief marketing officer Yvonne Balfour said: 'We are delighted to reveal our updated brand look and feel, showcased at the recent NACFB Commercial Finance Expo in Birmingham. 'This evolution of our brand better reflects our market position and meets the expectations of our broker network. In a crowded marketplace, it is vital for us to differentiate our proposition and be noticed. By developing our unique illustration style alongside our distinct brand colours, early feedback has demonstrated the significant impact the new look is already having.' The lender said it has reported 'strong' performance this year, with enhancements such as an increased maximum facility size for working capital and expanded asset finance securitisation. In Q1 2025, Ultimate Finance provided more than £62m ($84.4m) in new funding facilities. During the first three months of the year, the company offered more than 500 new facilities across its financial solutions, including asset finance, working capital, and bridging finance. Announcing the numbers in April, the company reported that asset finance alone reached a record monthly high, exceeding £10m. Later that month, Ultimate Finance expanded its asset finance securitisation facility with Lloyds Bank from £100m to £145m. Earlier this month, the company announced an increase in its maximum invoice finance facility size from £7m to £10m. Ultimate Finance stated that this enhancement in its working capital offering will enable it to continue building a presence in the market for larger deals and ensure it provides a competitive, distinct, and wide-ranging solution offering. "Ultimate Finance refreshes brand identity to boost growth " was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
6 days ago
- Business
- Yahoo
£10,000 in Lloyds shares in 2020 would have given investors how much in dividends?
Retail banks like Lloyds (LSE:LLOY) are among the most popular shares out there for dividend investors. They're known for their generous payout ratios and the predictable cash flows they enjoy from essential everyday products like loans, current accounts, and credit cards. Since 2020, this FTSE 100 share has paid total dividends of 10.9p per share. It's delivered healthy cash rewards even though — like other UK banks — it was forced to suspend dividends by regulators during the pandemic. This means that someone who invested £10,000 in Lloyds shares at the start of the decade would have made a total passive income of around £1,715. Dividends have risen sharply since the depth of the Covid-19 crisis. But can the bank maintain its recent impressive momentum? It's important to remember that dividends are never guaranteed. But encouragingly, the 17 brokers with ratings on Lloyds expect cash payouts to keep rolling (and climbing) at least to 2027. Year Dividend per share Dividend growth Dividend yield 2025 3.46p 9.1% 4.6% 2026 4.12p 19.1% 5.5% 2027 4.68p 13.6% 6.2% Indeed, predictions of blistering dividend growth mean yields rise rapidly above the broader FTSE 100's long-term average of 3-4%. These positive forecasts reflect analysts' expectations of breakneck profits growth over the period. Earnings per share are tipped to rise at an average of 21% a year through to 2027. Based on current earnings projections, I'd say Lloyds' dividend projections look pretty secure. Dividends for the next three years are covered between 2.1 times and 2.4 times by anticipated earnings. These figures sit comfortable above the accepted safety watermark of 2 times. On top of this, the bank has deep pockets it can call upon to maintain its ultra-progressive dividend policy if profits disappoint. Its Common Tier Equity (CET) 1 ratio was 13.5% as of March, above the target of 13% it's planning for by the end of 2026. Yet while I'm confident in current dividend forecasts today, things could change quickly depending on a Financial Conduct Authority (FCA) investigation into the motor finance industry. In a nutshell, loan providers — of which Lloyds is one of the country's biggest — face billions of pounds in fines if the Supreme Court upholds an earlier ruling that 'secret' commissions to car retailers are unlawful. Lloyds has set aside £1.15bn to cover possible costs, but some analysts think it could potentially run into tens of billions. As with the payment protection insurance (PPI) scandal earlier this century, the implications on lenders' profits and dividends could be severe. Risk averse investors may be waiting until the Supreme Court makes its ruling in July before buying Lloyds shares. In my opinion, I think they should consider avoiding the Black Horse bank regardless of the court's findings. Lloyds faces multiple profits challenges that could impact share price performance and dividends in the coming years. Loan growth and credit impairments could disappoint if the UK economy struggles. Margins are also under mounting pressure as interest rates fall and market competition heats up. On the plus side, the company stands to benefit from robust conditions in the UK housing market. But on balance, I think it poses too much risk for me to consider, even accounting for analysts' bright dividend estimates. The post £10,000 in Lloyds shares in 2020 would have given investors how much in dividends? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
