Wednesday, 19 June 2013
Brown Shipley & Co Ltd and the missing £1,000
It may just be a rounding-up error but you would have thought that someone would have spotted that when you add up the liabilities on Brown Shipley's consolidated statement of financial position as at 31st December 2012 in their 2012 accounts they total £335,954,000 and not £335,953,000.
Bank of Beirut (UK) Ltd
The latest batch of annual reports seem to have more errors than normal.
The 2012 annual report for Bank of Beirut shows total liabilities as at 31st December 2012 of £298,534,323 and total equity of £70,759,895. Add them together and the final digit should be an "8". In the accounts it's a "9". Only one £ we know, but can't these guys add up? What's more, when you go to the notes there are no sections 16, 17, 18 and 19. We wonder what they're hiding?!
On a lighter note, Bank of Beriut is one of a select number of banks that have made a pre-tax profit in all of at least the last 5 years.
The 2012 annual report for Bank of Beirut shows total liabilities as at 31st December 2012 of £298,534,323 and total equity of £70,759,895. Add them together and the final digit should be an "8". In the accounts it's a "9". Only one £ we know, but can't these guys add up? What's more, when you go to the notes there are no sections 16, 17, 18 and 19. We wonder what they're hiding?!
On a lighter note, Bank of Beriut is one of a select number of banks that have made a pre-tax profit in all of at least the last 5 years.
Tuesday, 18 June 2013
Credit Suisse International's remuneration of its highest paid director a little bit surprising
For the 2012 year, as just reported, Credit Suisse International's remuneration of its highest paid director was US$ 6,652,000 comprising pay, defined cash awards and pensions contributions. Not bad for a bank that made a pre-tax loss for that year of US$359 million and which has only made a profit once in the past 5 years.
Bank League Tables nearly ready
Bank League Tables 2013/14 are nearly ready. Contact us for more details.
Friday, 28 December 2012
Most consistently profitable bank
Measured over the last 4 years there is only one bank that has increased pre-tax profit year on year.
It is:
Standard Chartered Bank. £4,109,000,000 to £6,769,000,000
Over the last 3 years there are six:
Ahli United Bank (UK) Plc. £3,675,000 to £50,881,000
Sainsbury's Bank Plc. £5,900,000 to £39,700,000
Vanquis Bank Ltd. £8,994,000 to £44,700,000
Zenith Bank (UK) Ltd. £1,999,421 to £5,104,963
Close Brothers Ltd. £53,300,000 to £140,200,000
ABC International Bank Plc. £9,886,000 to £20,547,000.
It is:
Standard Chartered Bank. £4,109,000,000 to £6,769,000,000
Over the last 3 years there are six:
Ahli United Bank (UK) Plc. £3,675,000 to £50,881,000
Sainsbury's Bank Plc. £5,900,000 to £39,700,000
Vanquis Bank Ltd. £8,994,000 to £44,700,000
Zenith Bank (UK) Ltd. £1,999,421 to £5,104,963
Close Brothers Ltd. £53,300,000 to £140,200,000
ABC International Bank Plc. £9,886,000 to £20,547,000.
Fattest Cat
The fattest cat at present is a director of Standard Chartered Bank who, for the year to 31st December 2011, earned US$11,191,000. All in all, 25 banks paid their highest paid director more than £1,000,000.
And the safest bank is...
....Bank of the Philippine Islands (Europe) plc.
Ignoring start up situations, Bank of the Philippine Islands (Europe) Plc ha a capital assets ratio of 87.12%, putting it 4th in that table.
Ignoring start up situations, Bank of the Philippine Islands (Europe) Plc ha a capital assets ratio of 87.12%, putting it 4th in that table.
Vanquis Bank storming up the tables
With a return on capital of 43.70%, Vanquis Bank Ltd is positioned 4th in this table. Return on assets figure of 9.19% places it second. With a pre-tax profit growth of 91.85% it is positioned 13th; 25th in asset growth and 17th in capital growth. (Not surprising, therefore, that its highest paid director received £1,700,000 putting them 12th in that table). Lucky parent, Provident Financial Plc; unlucky Vanquis customers who pay a "representative 39.9% APR at present", a cash advance fee of 3% (minimum £3 - making taking out a tenner a 30% cost), and foreign currency transaction charge of 2.99%.
How many UK banks are loss making?
Two years on and 1 in 3 UK banks are still loss making. Of the 156 UK registered banks, 50 are loss making. Whilst The Royal Bank of Scotland Plc made a pre-tax loss of £719,000,000 - its best result for 4 years- , National Westminster Bank Plc has worsened, reporting a pre-tax loss of £4,427,000,000 compared to £2,381,000,000 for the previous year. At least Coutts & Co - another RBS group bank - has continued to make a profit, £157,464,000 for the latest year. (All figures for year to 31st December 2011).
Bank of Communications (UK) Ltd shows 6735% growth!
Occasionally statistics throw up an oddity. In its second year in the UK, Bank of Communications (UK) Ltd, a subsidiary of the Chinese-based Bank of Communications Co, Limited, has shown an asset growth of 6735.36%, putting it top of that particular table. This is due to it being a start-up situation where the issued share capital has increased from £162 to £100,000,000.
There are, however, nine other banks that show an asset growth of over 100%. These are (2) Goldman Sachs International Bank, (3) Shawbrook Bank Ltd, (4) Gatehouse Bank Plc, (5) State Street Bank Europe Ltd, (6) G E Capital Bank Ltd, (7) Talos Securities Ltd, (8) QIB (UK) Plc, (9) Aldermore Bank Bank Plc and (10) Metro Bank Plc.
There are, however, nine other banks that show an asset growth of over 100%. These are (2) Goldman Sachs International Bank, (3) Shawbrook Bank Ltd, (4) Gatehouse Bank Plc, (5) State Street Bank Europe Ltd, (6) G E Capital Bank Ltd, (7) Talos Securities Ltd, (8) QIB (UK) Plc, (9) Aldermore Bank Bank Plc and (10) Metro Bank Plc.
Thursday, 13 December 2012
More Banks
For the 6 months to December 2012 more banks have been registered than have deregistered.
The new banks are:
Bank of Cyprus UK Limited, and
Cambridge and Counties Bank Limited
Three have changed their name:
J P Morgan Securities Limited is now J P Morgan Securities Plc
Egg Banking Plc is now Canade Square Operations Plc, and
Northern Rock Plc is now Virgin Money Plc.
There has been one deletion, Pensions Bank Limited.
The new banks are:
Bank of Cyprus UK Limited, and
Cambridge and Counties Bank Limited
Three have changed their name:
J P Morgan Securities Limited is now J P Morgan Securities Plc
Egg Banking Plc is now Canade Square Operations Plc, and
Northern Rock Plc is now Virgin Money Plc.
There has been one deletion, Pensions Bank Limited.
Monday, 9 July 2012
Chairmans' understatements
"The Bank's financial performance remains below what the Board believes acceptable". Chairman of Islamic Bank of Britain Plc which has not made a profit for at least 5 years.
"The Bank has improved its balance sheet position and is well positioned for growth in 2012". Chairman of Bank of Ireland (UK) Plc which made a pre-tax loss of £42 million for 2011.
"...solid underlying business performance...". Chairman of Bank of London & the Middle East Plc which made a pre-tax loss of £10.8 million for 2011.
"The Bank has improved its balance sheet position and is well positioned for growth in 2012". Chairman of Bank of Ireland (UK) Plc which made a pre-tax loss of £42 million for 2011.
"...solid underlying business performance...". Chairman of Bank of London & the Middle East Plc which made a pre-tax loss of £10.8 million for 2011.
Saturday, 7 January 2012
Thursday, 21 July 2011
Pre-Tax Profit Table
A quick look at this year's Pre-Tax Profit Table makes for uncomfortable reading. Of the 151 banks, 51 - an astonishing 1 in 3 - are loss-making. With an average profit of around £53,000,000, if one were to take out the top two banks, Barclays and HSBC who together made over £10 billion, the average profit would be (consolidations aside) - a loss!
The Fab Four
Of the 153 UK incorporated banks there are only four that have seen an increase in pre-tax profits - year on year - over the past 4 years.
They are:
Santander UK Plc
Smith & Williamson Investment Management Ltd
Standard Chartered Bank
Abbey National Treasury Services Plc
They are:
Santander UK Plc
Smith & Williamson Investment Management Ltd
Standard Chartered Bank
Abbey National Treasury Services Plc
Are the well capitalised banks the biggest banks?
When it comes to lending there are good banks, there are reckless banks and then there are all those in the middle. As a shareholder one wants to see a good return on one's investment but in pushing a bank too far into unsuitable lending in the search for ever better returns one wants / needs a good capital base to weather the storms that crop up from time to time. The alternative is to plump for a bank that is well capitalised and prudent in its lending.
Interestingly, the 11 best capitalised banks (capital / assets) are all in the bottom 50 in terms of total assets, suggesting that biggest isn't always best.
The eleven are:
1. China Construction Bank (London) Ltd
2. Melli Bank Plc
3. Bank of the Philippine Islands (Europe) Plc
4. Metro Bank Plc
5. European Islamic Investment Bank Plc
6. C I T Bank Ltd
7. Allied Bank Philippines (UK) Plc
8. Bank Saderat Plc
9. Macquarie Bank International Ltd
10. Gatehouse Bank Plc
11. A N Z Bank (Europe) Ltd
Interestingly, the 11 best capitalised banks (capital / assets) are all in the bottom 50 in terms of total assets, suggesting that biggest isn't always best.
The eleven are:
1. China Construction Bank (London) Ltd
2. Melli Bank Plc
3. Bank of the Philippine Islands (Europe) Plc
4. Metro Bank Plc
5. European Islamic Investment Bank Plc
6. C I T Bank Ltd
7. Allied Bank Philippines (UK) Plc
8. Bank Saderat Plc
9. Macquarie Bank International Ltd
10. Gatehouse Bank Plc
11. A N Z Bank (Europe) Ltd
OneSavings Bank Plc
OneSavings Bank Plc is the new kid on the block in the new 2011/12 edition of Bank League Tables. One Savings Bank used to be Kent Reliance Building Society and now trades as Kent Reliance. We have lost Liverpool Victoria Banking Services Ltd and Capital One Bank (Europe) Plc. The Hardware Federation Finance Co Ltd has changed its name to BIRA Finance Ltd, and Kleinworth Benson Private Bank Ltd has dropped the "Private".
Friday, 17 June 2011
Southsea Mortgage & Investment Company Ltd
So there you have it. Big banks = Bailed out. Small banks = Not bailed out.
"Southsea" was the smallest capitalised bank of all the UK incorporated banks at just £2.5 million as at 31st March 2009. However its capital / assets ratio (22.10%) put it in the top 40 of the UK's 154 banks, likewise its gearing (3.52:1).
What are the lessons for the future? If you have more than £85,000 on deposit, split it up between the 154 banks. And if you have more than £13 million (154 x £85,000)? Buy some gold.
Bank League Tables 2011 / 12 will be out at the end of the month.
"Southsea" was the smallest capitalised bank of all the UK incorporated banks at just £2.5 million as at 31st March 2009. However its capital / assets ratio (22.10%) put it in the top 40 of the UK's 154 banks, likewise its gearing (3.52:1).
What are the lessons for the future? If you have more than £85,000 on deposit, split it up between the 154 banks. And if you have more than £13 million (154 x £85,000)? Buy some gold.
Bank League Tables 2011 / 12 will be out at the end of the month.
Southsea Mortgage & Investment Company Ltd
Press release from Bank of England. 16th June2011.
Following a decision by the Financial Services Authority (FSA) to initiate the special resolution regime (SRR), and a subsequent application to court by the Bank of England, Southsea Mortgage and Investment Company Limited (Southsea) has been placed into the Bank Insolvency Procedure and BDO LLP (BDO) has been appointed bank liquidator. As of today, Southsea has therefore ceased trading.
The failure of Southsea, a small bank with just over 250 depositors, follows a deterioration in its financial position as a result of management decisions and the firm’s specific business model. At failure, the firm had retail deposits of £7.4 million.
The Financial Services Compensation Scheme (FSCS) is in place to protect eligible deposits up to the insured limit of £85,000. As a result of Southsea entering the SRR, the FSCS will pay compensation to each eligible depositor up to the limit of £85,000. In order to minimise disruption and to provide access to funds, the FSCS intends to make its payout as quickly as possible. Retail depositors do not need to contact the FSCS to receive a payout as the FSCS will be contacting them. Further details about the payout, including information about whether deposits are eligible, can be found at www.fscs.org.uk or by calling the FSCS on 0800 678 1100 or 020 7741 4100. Eligible depositors with amounts in excess of the insured limit of £85,000 may be entitled to receive a share of their savings above this limit, as part of the insolvency process.
Depositors who are not covered by the FSCS will, like other creditors of Southsea, be able to claim in the insolvency. Such creditors should contact the bank liquidator, BDO, to register their claim on 020 7486 5888.
Anyone with mortgages or loans from Southsea should continue to make repayments and service their debts in the normal way. If they have any queries, they should contact BDO using the telephone number above.
In making this decision, the FSA have determined that the conditions for initiating the SRR under the Banking Act 2009 were met: ie that Southsea no longer satisfied the FSA’s threshold conditions for operating as a deposit-taker, and that it was not reasonably likely (ignoring any action which could be taken under the Banking Act) that action would be taken by, or in respect of, Southsea that would enable it once again to satisfy the threshold conditions. In applying to the court, the Bank of England has acted under the powers conferred on it by the Banking Act 2009, having regard to the Code of Practice issued by HM Treasury. The decision followed discussion with the FSA and HM Treasury and an evaluation of the possible resolution options against the SRR’s objectives laid down in the Banking Act.
Following a decision by the Financial Services Authority (FSA) to initiate the special resolution regime (SRR), and a subsequent application to court by the Bank of England, Southsea Mortgage and Investment Company Limited (Southsea) has been placed into the Bank Insolvency Procedure and BDO LLP (BDO) has been appointed bank liquidator. As of today, Southsea has therefore ceased trading.
The failure of Southsea, a small bank with just over 250 depositors, follows a deterioration in its financial position as a result of management decisions and the firm’s specific business model. At failure, the firm had retail deposits of £7.4 million.
The Financial Services Compensation Scheme (FSCS) is in place to protect eligible deposits up to the insured limit of £85,000. As a result of Southsea entering the SRR, the FSCS will pay compensation to each eligible depositor up to the limit of £85,000. In order to minimise disruption and to provide access to funds, the FSCS intends to make its payout as quickly as possible. Retail depositors do not need to contact the FSCS to receive a payout as the FSCS will be contacting them. Further details about the payout, including information about whether deposits are eligible, can be found at www.fscs.org.uk or by calling the FSCS on 0800 678 1100 or 020 7741 4100. Eligible depositors with amounts in excess of the insured limit of £85,000 may be entitled to receive a share of their savings above this limit, as part of the insolvency process.
Depositors who are not covered by the FSCS will, like other creditors of Southsea, be able to claim in the insolvency. Such creditors should contact the bank liquidator, BDO, to register their claim on 020 7486 5888.
Anyone with mortgages or loans from Southsea should continue to make repayments and service their debts in the normal way. If they have any queries, they should contact BDO using the telephone number above.
In making this decision, the FSA have determined that the conditions for initiating the SRR under the Banking Act 2009 were met: ie that Southsea no longer satisfied the FSA’s threshold conditions for operating as a deposit-taker, and that it was not reasonably likely (ignoring any action which could be taken under the Banking Act) that action would be taken by, or in respect of, Southsea that would enable it once again to satisfy the threshold conditions. In applying to the court, the Bank of England has acted under the powers conferred on it by the Banking Act 2009, having regard to the Code of Practice issued by HM Treasury. The decision followed discussion with the FSA and HM Treasury and an evaluation of the possible resolution options against the SRR’s objectives laid down in the Banking Act.
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