About 60% of the Lloyds secured lending can be considered as the “high loan-to-value” ratio. Royal Bank of Scotland is on second number having 40% while Santander, Nationwide, Barclays and HSBC have 35%, 30%, 20% and 10% of risky secured lending respectively.
These loans mainly relate to advances against mortgage and commercial property lending. A “High” category ratio is from 70 to 90 percent whereas “Very High” is considered as above 90%.
The Bank said in its financial stability report, that the variations in the proportion of ‘Loan to value’ borrowers across the banks indicates that such exposure to vulnerable households is concentrated in a few banks.
It is expected that Lloyds Group will present its long awaited strategic review in this week. The high street lender 41% stake of which is owned by tax payers is expected to say that it is on course for an exit from State backed emergency fund, given by the government during the financial crisis in 2008.
The new CEO of the bank is also expected to chalk out a cost-saving plan 1 bln pounds, which could result into the job loss of 15,000. While reviewing its ongoing strategy, the bank is also planning to exit from many countries, except from Australia and Latin America.
Speculations are being made that, the bank’s CEO Mr. Horta-Osorio has the plans to keep its insurance operations named as ‘Scottish Widows’ and will revive the old ‘Halifax’ brand. He is also expected to prepare a strong case for limiting branches sales to 600 required by Brussels as condition of state-aid. The Independent commission of banking has indicated the recommendation to Lloyds for force-selling more branches to increase competition on high street.
The Bank will use the review to sell its assets, including much of the assets finance operations along with its house building empire.