Thursday, July 28, 2022

Working people suffering - Banks aren't.

 Families are spending an average of £89 more a month on energy, food and fuel than they were before the pandemic, Lloyds Banking Group said.

Lloyds’ chief executive, Charlie Nunn, said about 20% of the bank’s customers had had to adapt their spending “significantly” to rising prices, forcing them to refrain from purchases such as white goods and computers. He added that customers had cancelled or blocked 2.2m subscriptions services such as Netflix since the summer of 2021.

 UK banks have largely benefited from nine consecutive months of interest rate rises by the Bank of England, where policymakers have been trying to get soaring inflation under control. Rising rates are usually good news for bank finances, since banks are able to charge borrowers more for loans and mortgages, which in turn increases their net interest margin – a key measure of profitability and growth. Lloyds pre-tax profits for the three months to the end of June were in line with the same period last year at just over £2bn, exceeding analyst estimates of £1.6bn.

Lloyds’ net interest margin – the difference between what it earns from loans and pays for deposits – rose to 2.87% in the second quarter compared with 2.5% last year.

Lloyds lays bare impact of soaring inflation on everyday customers | Lloyds Banking Group | The Guardian

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