Banks' Risks From U.K. Motor Finance Probe Rise -- Market Talk

Dow Jones10-28

0817 GMT - Banks' exposure to the U.K.'s probe into motor finance commissions has increased, RBC Capital Markets says in a research note. Close Brothers warned of a potential significant financial hit after a court upheld one of the lawsuits related to undisclosed commissions. "Retroactivity could be broader than the 2007-2020 window we already knew about, and any finance commission model where the exact quantum of the commission was not disclosed to the customer could also get captured by the judgment," analysts write. Consensus estimates have been too optimistic and are now expected to move closer to RBC's estimates, they say. RBC expects a 250 million pound hit for Close Brothers, 2.5 billion pounds for Lloyds, 630 million pounds for Bank of Ireland, 350 million pounds for Barclays and 1.1 billion pounds for Santander. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

October 28, 2024 04:18 ET (08:18 GMT)

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Close Brothers warned of a potential significant financial hit after a court upheld one of the lawsuits related to undisclosed commissions. \"Retroactivity could be broader than the 2007-2020 window we already knew about, and any finance commission model where the exact quantum of the commission was not disclosed to the customer could also get captured by the judgment,\" analysts write. Consensus estimates have been too optimistic and are now expected to move closer to RBC's estimates, they say. RBC expects a 250 million pound hit for Close Brothers, 2.5 billion pounds for Lloyds, 630 million pounds for Bank of Ireland, 350 million pounds for Barclays and 1.1 billion pounds for Santander. 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Close Brothers warned of a potential significant financial hit...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SAN","symbol_name":"桑坦德银行","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2478400178","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2478400178","pubTimestamp":1730103480,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0817 GMT - Banks' exposure to the U.K.'s probe into motor finance commissions has increased, RBC Capital Markets says in a research note. Close Brothers warned of a potential significant financial hit after a court upheld one of the lawsuits related to undisclosed commissions. \"Retroactivity could be broader than the 2007-2020 window we already knew about, and any finance commission model where the exact quantum of the commission was not disclosed to the customer could also get captured by the judgment,\" analysts write. Consensus estimates have been too optimistic and are now expected to move closer to RBC's estimates, they say. RBC expects a 250 million pound hit for Close Brothers, 2.5 billion pounds for Lloyds, 630 million pounds for Bank of Ireland, 350 million pounds for Barclays and 1.1 billion pounds for Santander. 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