|Lloyds Banking Group
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Lloyds Share Discussion Threads
Showing 309701 to 309724 of 309725 messages
|MRF fyi- The 2015 Report & Accounts states:
"The remaining issued Enhanced Capital Notes (ECNs) were not taken into account for the purposes of core capital in the PRA stress tests and the Group has determined that a Capital Disqualification Event (CDE), as defined in the conditions of the ECNs, has occurred. This determination was confirmed by a unanimous decision by the Court of Appeal on 10 December 2015 and on 29 January 2016 the Group announced the redemption of certain series of ECNs using the Regulatory Call Right. The Group also launched Tender Offers for the remaining series of ECNs on 29 January 2016 and subsequent to completion of such offers, the Group has announced that it will redeem those ECNs not validly tendered using the Regulatory Call Right. The Tender Offers and process for redemption of the ECNs not validly tendered by the noteholders will be completed before the end of the first quarter with an
estimated cost of £0.7 billion.
The Group is aware that the Trustee has been granted leave by the Supreme Court to appeal the Court of Appeal decision. In the event that the Supreme Court were to determine that a CDE had not occurred, the Group would compensate fairly the holders of the ECNs whose securities are redeemed using the Regulatory Call Right for losses suffered as a result of early redemption.|
|"Lloyds made an underlying profit of £2.05 billion in the three months to March, down 6% but still better than consensus forecasts"
so why the drop dont get it .|
|MRF - regardless of when and why issued, perps and pibs are subordinated and get rewarded accordingly. You take a higher risk for a greater return.|
|I guess some traders made some money out of Lloy over the last couple of days. share price up to 70p on Tues. Down to c.65p this am. Now back up to 68p (SP prior to ex div).|
|MY Retirement Fund, next you will be telling us that the poor institutions as well as a few private individuals have done really badly receiving a large income on these over the last 7-8 years and their money back . Poor soles!|
|No that NPV explanation is incorrect. The redemption loss was because many of the notes issued were in exchange for perpetual preference shares and permanent interest bearing shares (PIPs) which Lloyds aquired from takeovers. Originally they would have been considered equity at par value but since they have chosen to unfairly extinguish them without the holders agreement they have had to book and construe it as a chatge.The high coupons of the ECNs reflected the original dividend sum when the PIPs were issued. At the time of issue interest rates wouls have been higher. For example when the base rate was 8% + in the 90s some PIPs would have been issued at 12% +The ECNs were essentially a misselling scam. As I have already stated, what goea around comes around and this is likely to cost shareholders a lot more in the long run, just as PPI has !|
my retirement fund
|Ianood. Tku shud have been aware of that|
|manonph - It's the NPV of the high coupons that caused the notes to trade over par. The high coupon was a come on to compensate for the lack of seniority and also the ability to redeem if they no longer fulfilled FCA capital requirements.|
|Don't understand why the bond proceeds reduce profits. When they were issued it didn't go straight to p/l account as profit surely ?|
|In normal circumstances yes; the question with these ECNs though is whether they could be cancelled or not. I am not a holder but it is not straightfoward.|
|With Lloyds spinning off excess capital, interest rates on the deck and likely to continue to be for the foreseeable future - makes very sound commercial sense to redeem high coupon notes before adding it to the dividend pot .|
|MRF - yes, it does look as though Lloyds were doing the holders a favour!|
|Kiwi - "The vast majority". That is the problem; too many people internally focussed.|
|What a cheek .79bn charge for "redeeming" the ECNs.They were not redeemed the still exist. Lloyds have fiddled their books again and are lying imo.Time will prove this, the past will catch up with them it always does no matter how long it takes.Look at the bent top brass involved in Yorkshire police. Justice will come round for them. What goes around comes around!|
my retirement fund
|So profits hit buying back bonds which demand high interest payments and this will save lloyds a decent amount of money in future years. That's a positive re future profitability. Fall is overdone.|
its the oxman
|Lloyds profits tumble as bond buyback costs weigh
Lloyds' profits were cut in half by a major bond buyback, which should reduce its interest payments in the coming years
28 APRIL 2016 • 8:14AM
Lloyds profits fell by half in the first three months of the year as the cost of a major bond buyback hit the bottom line, and the bank also missed out on the profits from TSB as it sold its stake in the spin-off lender last year.
The bank's growth plans have also been hit by low interest rates, which have prompted it to hold back its mortgage lending ambitions. Bosses added that it may be unwise to grow rapidly when much of the demand in the market is coming from a surge in buy-to-let landlords borrowing more.
Pre-tax profits dived to £654m compared with £1.2bn a year earlier. However its underlying profits, which strip out one-off costs, held steady at £2.1bn.
The biggest drag was the £790m repurchase of ECNs. These are high-interest bonds which Lloyds wanted to buy back to cut its interest bill, but investors - who benefitted from the high income - resisted, leading to a legal battle which Lloyds won.
|The vast majority of wage earners and EU immigrants work in the service sector where wage rises would have minimum effect on the price of exports.|
|Ant seems to think otherwise. , We continue to support and benefit from a resilient UK economy|
|kiwi - you can not have it both ways - increase wages and make exports uncompetitive. Not the smartest option.|
|LLOY suffering in part because of Brexit but also because there's very little confidence in the UK and world economies going forward. Even with increasing so called 'employment' wage growth and inflation are, at best, anemic.
Don't see it changing as long as you've got open door EU immigration policies keeping wages down.|
|Exactly. So how do they generate fee income?|
|Who needs a branch ? I never go into one any more.|
|Its a question of rather disappointing revenue mainly as a result of lower fee income having to be offset by a war on costs. They will have to address this but selling products becomes difficult when staff numbers are reducing and branches are closing.|
|Have to be pragmatic about the ups & downs.
I'll keep adding at these levels as & when I have the cash because I don't think the government's public sale will offer a better deal when it occurs.|