{"id":2691,"date":"2009-01-16T09:11:03","date_gmt":"2009-01-16T09:11:03","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=2691"},"modified":"2025-03-27T15:48:45","modified_gmt":"2025-03-27T15:48:45","slug":"uk-banks-suffer-32bn-credit-dealing-hit-over-q1-q3-2008","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=2691","title":{"rendered":"UK banks suffer \u00a332bn credit \/ dealing hit over Q1-Q3 2008"},"content":{"rendered":"<p>Banks and building societies operating in the UK suffered an aggregate net loss after tax and provisions of &pound;5.8 billion in the first three quarters of 2008, according to data obtained from the Bank of England under a freedom of information request. This compares with a net profit for banks alone of &pound;29.0 billion in all of 2007. (The statistics include building societies from the start of 2008.)<\/p>\n<p>The loss over Q1-Q3 2008 was due to a negative contribution of &pound;18.9 billion from dealing activities &ndash; probably reflecting write-downs on securitised assets &ndash; and provisions of &pound;12.8 billion for bad and doubtful debts. Pre-tax profits excluding dealing and provisions were &pound;26.6 billion versus &pound;40.5 billion for banks alone in all of 2007 &ndash; see chart.<\/p>\n<p>Despite the &pound;5.8 billion loss, banks and building societies paid out dividends of &pound;17.9 billion over Q1-Q3 2008. Consequently, their stock of retained earnings fell by &pound;23.6 billion &ndash; more than cumulative retentions by banks alone over the previous three years.<\/p>\n<p>Even allowing for a further retained earnings loss in the fourth quarter, the erosion of internal capital last year will have been comfortably exceeded by new capital-raising of more than &pound;70 billion, with the government contributing &pound;37 billion. In other words, despite staggering write-downs and provisions, banks&rsquo; and building societies&rsquo; aggregate capital ended 2008 significantly higher than a year before.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/UK-banks-profit-loss-0109.jpg?__SQUARESPACE_CACHEVERSION=1232098071429\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Banks and building societies operating in the UK suffered an aggregate net loss after tax and provisions of &pound;5.8 billion in the first three quarters of 2008, according to data obtained from the Bank of England under a freedom of information request. This compares with a net profit for banks alone of &pound;29.0 billion in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2691","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2691"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2691\/revisions"}],"predecessor-version":[{"id":5000,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2691\/revisions\/5000"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}