Latest news with #GBP9
Int'l Business Times
04-08-2025
- Automotive
- Int'l Business Times
UK Lenders Face $12 Bn Plus Compensation Bill Despite Court Ruling: Watchdog
British finance firms behind high interest car loans could have to pay out more than nine billion pounds ($12 billion) in compensation despite the country's highest court ruling that most of the controversial deals were lawful, a financial watchdog said Sunday. The Supreme Court on Friday partially overturned judgments that the loans were unlawful, giving relief to banks which had been bracing for compensation claims from millions of car-buyers. It did, however, uphold one of the three cases, which allows the claimant to seek compensation. And in a similar but separate probe, the Financial Conduct Authority (FCA) said that the cost of any redress scheme relating to discretionary commission arrangements for car loans would likely be higher than GBP9 billion. "While there are plausible scenarios which underpin estimates of a total cost as high as GBP18 billion, we do not consider those scenarios to be the most likely and analyst estimates in the midpoint of this range are more plausible," the FCA said in a statement. The FCA estimates that most individuals will probably receive less than GBP950 in compensation. The court ruling had given the FCA "clarity... because we have been looking at what is unfair and, prior to this judgment, there were different interpretations of the law coming from different courts," it said. "It is clear that some firms have broken the law and our rules. It's fair for their customers to be compensated," said Nikhil Rathi, chief executive of the FCA. The Supreme Court decision mostly overturned Court of Appeal rulings last year that it was unlawful for car dealers to receive a commission on loans without sufficiently informing borrowers. In some cases, the loans -- available from 2007 -- allowed car dealers to offer higher interest rates in return for a bigger commission from banks. The ruling means that dealers have some leeway when arranging loans, without requiring explicit consent from borrowers for terms that may benefit lenders. The case that was upheld involved Marcus Johnson, who in 2017 bought a Suzuki Swift from a car dealer in Cardiff for GBP6,500 including loan costs -- unaware that interest on the loan amount would fund a commission of more than GBP1,600. When the Court of Appeal ruled in favour of Johnson, ordering FirstRand Bank, a South African based lender, to refund the commission plus interest, it sparked panic across the finance sector. That ruling was upheld by the top court due to the high level of commission Johnson was charged and the complexity of the contract setting out the fee, which limits the scope of other compensation claims. HSBC bank analysts had suggested before the trial that the total cost to the banking sector could have reached GBP44 billion.
Yahoo
06-02-2025
- Business
- Yahoo
GSK PLC (GSK) Q4 2024 Earnings Call Highlights: Strong Specialty Medicines Drive Growth Amid ...
Sales Growth: Increased by 8% to over GBP31 billion. Core Operating Profit: Up 13%. Core EPS: Increased by 12%. Dividend: Increased to 61p per share. Specialty Medicines Growth: Up 19% in 2024. Oncology Sales: Nearly doubled to more than GBP1.4 billion. HIV Sales Growth: Up 13% for the full year. Vaccine Sales: GBP9 billion, down 3%. Free Cash Flow: Improved to GBP3.5 billion, excluding Zantac payments. Net Debt: Reduced to GBP13 billion. Share Buyback Program: Announced up to GBP2 billion over the next 18 months. 2025 Sales Growth Guidance: Expected to increase between 3% and 5%. 2025 Core Operating Profit and EPS Guidance: Expected to increase between 6% and 8%. Warning! GuruFocus has detected 4 Warning Signs with GSK. Release Date: February 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GSK PLC (NYSE:GSK) reported an 8% increase in sales for 2024, reaching over GBP31 billion, driven by strong growth in specialty medicines. Core operating profit rose by 13% and core EPS increased by 12%, leading to two upgrades in guidance for 2024. The company announced a dividend increase to 61p per share and plans to pay 64p in 2025, reflecting strong financial performance. GSK PLC (NYSE:GSK) expects five new product approvals in 2025, including BLENREP for multiple myeloma and depomokimab for severe asthma. The company achieved 13 positive Phase III readouts in 2024, strengthening its R&D pipeline, particularly in oncology and respiratory immunology. Vaccine sales faced challenges due to external pressures in the U.S. and China, impacting Arexvy and Shingrix. The introduction of the Inflation Reduction Act is expected to have a GBP150 million to GBP200 million impact on HIV sales in 2025. GSK PLC (NYSE:GSK) adjusted its expectations for vaccine sales growth, anticipating a decrease in low single-digit percent in 2025. The company faces pricing and genericization pressures in its General Medicines portfolio, expecting sales to be broadly flat in 2025. There is significant speculation and potential changes to U.S. vaccine policy, contributing to short-term pressures on the vaccine market. Q: Can you provide more details on your expectations for Shingrix in China for 2025, given the current macroeconomic challenges? A: Emma Walmsley, CEO, mentioned that while there are short-term pressures acknowledged for 2024 and 2025, GSK remains ambitious about the long-term potential in China. The partnership with Joffe is aimed at navigating these short-term challenges, focusing on expanding in high-tier cities. Q: Within the mid-single-digit growth for HIV in 2025, are you anticipating much competitive impact from the launch of lenacapavir? A: David Redfern, President of Corporate Development, expressed confidence in continued growth for Apretude, highlighting the underdeveloped PrEP market in the U.S. and the strong efficacy of long-acting options. He noted that while lenacapavir may enter the market, it has limitations such as drug-drug interactions and nodules, which may not appeal to all patients. Q: Can you discuss the international opportunity for Arexvy and what factors might limit your ability to access these markets in 2025? A: Luke Miels, Chief Commercial Officer, stated that GSK is encouraged by the early uptake of Arexvy outside the U.S., with national immunization programs in several countries. The focus is on differentiating based on clinical data, and the market research indicates positive perceptions of Arexvy's efficacy and cost-effectiveness. Q: What are the expectations for peak sales of Arexvy and Shingrix, given the current headwinds? A: Emma Walmsley, CEO, reiterated that there is no change to the long-term ambitions for these assets. The short-term pressures are acknowledged, but the broader portfolio's strength and pipeline progress allow GSK to maintain its outlook for 2031, with significant contributions expected from specialty medicines and oncology. Q: How does GSK view the commercial environment for Arexvy in the U.S., particularly with Pfizer gaining market share? A: Luke Miels, Chief Commercial Officer, acknowledged the competitive pressure but emphasized GSK's focus on retail and preserving value. He noted that Arexvy holds a significant market share and that GSK is positioning itself for future opportunities, including potential revaccination and expanded indications. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
