BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Lloyds TSB has warned that it is feeling the effects of the downturn in consumer sentiment, conceding that the growth of its lending to individuals has slowed and that is faces a higher impairment charge on bad debts to struggling customers. Although it maintained that it was on track to generate profits of more than?3.5 billion for the full year, Britain's fifth-largest bank warned that more of its heavily indebted customers were finding it difficult to repay their loans. Lloyds TSB also said it was reviewing the assumptions it makes about mortality rates for its customers and it was likely to 'strengthen' its reserves as a result. The bank said that this, combined with increased provisions to cover claims over missold mortgage endowment policies, would probably cost it about?300 million. Lloyds TSB said this morning that its mortgage lending remained strong and that it was 'making progress' in recruiting quality customers. But the bank added: 'However, against the backdrop of slower growth in consumer lending, the retail bank has experienced lower levels of growth in unsecured consumer lending, together with some further deterioration in credit quality as more customers, with higher levels of indebtedness, have experienced repayment difficulties. 'This will lead to an increase in the level of UK retail banking impairment provisions as a percentage of average lending on a comparable basis, for the second half of 2005.' The significant point is impairment charges are rising and customers have having a difficulty repaying loans. On that thought I have several comments. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.