Steve Davies and Andre Spicer Talk About the UK Industry’s Recovery Despite Huge Involvement in PPI mis selling and other “Bad” Bank Behaviour

March 3, 2015
by admin in PPI News

Jupiter UK Growth Fund co-manager Steve Davies, writing for CityAm.com, shared that Lloyds’ capability to repay its dividends by quadrupling its profits to £1.76 in the last quarter indicates the industry’s recovery from the 2008 financial crisis. Lloyds’ capability to recoup and improve its profits allows it to rebuild capital as soon as possible and even grow its own loan book.

Davies also pointed out that Lloyds could now pay about 5-6% of their shares over the next couple of years, which should be very beneficial for shareholders and investors, and new investors who may find the offer attractive.

However, on the other side of the spectrum, Andrew Spicer, professor of Organisational Behaviour at Cass Business School, says the industry needs to learn a few more things before one could say it was back to recovery.

He pointed out payment protection insurance mis selling, continuous fraud and other bad behaviour. He said last week’s USDJ’s investigation on UK banks being involved in manipulation of precious metals markets is a sign that banks haven’t “matured” enough to downplay its profits.

Spicer said the regulators of the industry should be praised for doing something about it, but for everything else, banks are still ring-fencing, paying billions of recompense for mis sold PPI and are dealing with a great number of initiatives crammed together to aid the return of consumer confidence.