Sectors: Financials

Banks are making money again, sometimes to the annoyance of credit-stretched small businesses and other frustrated clients. As bailed-out, state-backed Lloyds Banking Group prepared to unveil a first-half turnaround from £4 billion losses to profits of £1.6 billion, HSBC, not only Britain’s biggest bank but also uncontaminated with any state rescue, announced a 30 per cent pre-tax profits recovery to £6.4 billion.       

The bank denied that it was squeezing small businesses, insisting that most were paying lower interest rates than a year ago. ‘Our customers are shying away from borrowing,’ commented finance director Douglas Flint. 

Elsewhere, AIM-quoted broking and investment group Merchant Securities has turned a £4.6 million annual loss into £640,000 pre-tax profits as recent restructuring pays off. Turnover rose 40 per cent to £7.6 million in the year to March, helped by a strong performance on the client wealth management side with a contribution from Cavendish Young, acquired last September. Chief executive officer Patrick Claridge says Merchant Securities, which owns broker John East, is looking for more acquisitions.