Lloyds Banking Share Discussion Threads

[jpjohn1] 20/2/2019 18:42

Taking a step back from posting chaps, hopefully this will keep heading northwards for us

[xxxxxy] 20/2/2019 18:11

Withdrawal Agreement. Made in Madness. Made for Hell.

And define 'temporary'

[tradejunkie2] 20/2/2019 18:06

Spanish are lazy all they do is Siesta

[ayl30] 20/2/2019 18:05

Everyone is bored with it and the preening politicos

[thomstar] 20/2/2019 18:04

Who wants to go Spain anyway it's full of thieving little c#n#$

[smurfy2001] 20/2/2019 18:02

Is it me or has the news quietened down about Brexit?

I mean when the markets were in turmoil it was all the rage.

[jpjohn1] 20/2/2019 17:44

Not always keen on the fool, but they are positive on Lloyds In this piece, I'll give my verdict on today's 2018 results and explain whether I'd buy the bank's stock.A solid performanceThe bank's after-tax profits rose by 24% to £4.4bn last year, while revenue rose by 2% to £17.8bn.Lending growth slowed and both mortgage and credit card lending was broadly unchanged last year. However, lending to small- and medium-sized businesses grew, as did motor finance. The group also reported a sharp increase in loans to wealthy customers.Much more profitableWhen profits rise faster than revenue, it normally means a company's profit margins have improved. That's what's happened here. Lloyds' net interest margin - a measure of lending profit - rose from 2.86% to 2.93%.Alongside this, tight control of costs saw the bank's costs, measured as a percentage of revenue, fall from 51.8% to 49.3%.The end result was that the bank delivered a return on tangible equity of 11.7%, up from 8.9% in 2017. This is a key measure of profitability for banks - and Lloyds' performance is much better than key rivals.Rival bosses will be green with envyI apologise for these rather dry figures - but for banking investors they're pretty impressive. Certainly the bosses of rivals such as Barclays and RBS may feel slightly envious today. Both men are still struggling with costs that account for more than 60% of their banks' income, and returns on tangible equity of less than 5%.Barclays and RBS may offer an interesting opportunity for value investors, but for income investors, today's figures confirm my view that Lloyds is probably still the safest buy in British banking.Focus on shareholder returnsSome shareholders may be disappointed that despite the bank's earnings per share rising by 27% 2018, the dividend has only been lifted by 5%.Instead of returning more cash to shareholders directly, the bank has decided to return cash through a £1.75bn share buyback. This equates to an extra 2.46p per share. Combined with the 3.21p dividend, it will take total shareholder returns for 2018 to 5.66p, or around 9.4%.That's not to be sniffed at. But the problem with buybacks is that unless you sell your shares, you don't see any extra cash in your pocket. So why is Lloyds' chief António Horta-Osório buying back shares instead of hiking the dividend?I suspect the answer has two parts. Firstly, the current dividend provides a yield of almost 5.4%, which is probably high enough to attract income investors. The second reason is that by returning surplus cash through buybacks, Horta-Osório is laying the groundwork for an uncertain future.If Lloyds has fewer shares in circulation, then it will be easier for the bank to generate earnings per share growth and to increase its dividend, even if profit growth slows.

[jpjohn1] 20/2/2019 17:44

Not always keen on the fool, but they are positive on Lloyds In this piece, I'll give my verdict on today's 2018 results and explain whether I'd buy the bank's stock.A solid performanceThe bank's after-tax profits rose by 24% to £4.4bn last year, while revenue rose by 2% to £17.8bn.Lending growth slowed and both mortgage and credit card lending was broadly unchanged last year. However, lending to small- and medium-sized businesses grew, as did motor finance. The group also reported a sharp increase in loans to wealthy customers.Much more profitableWhen profits rise faster than revenue, it normally means a company's profit margins have improved. That's what's happened here. Lloyds' net interest margin - a measure of lending profit - rose from 2.86% to 2.93%.Alongside this, tight control of costs saw the bank's costs, measured as a percentage of revenue, fall from 51.8% to 49.3%.The end result was that the bank delivered a return on tangible equity of 11.7%, up from 8.9% in 2017. This is a key measure of profitability for banks - and Lloyds' performance is much better than key rivals.Rival bosses will be green with envyI apologise for these rather dry figures - but for banking investors they're pretty impressive. Certainly the bosses of rivals such as Barclays and RBS may feel slightly envious today. Both men are still struggling with costs that account for more than 60% of their banks' income, and returns on tangible equity of less than 5%.Barclays and RBS may offer an interesting opportunity for value investors, but for income investors, today's figures confirm my view that Lloyds is probably still the safest buy in British banking.Focus on shareholder returnsSome shareholders may be disappointed that despite the bank's earnings per share rising by 27% 2018, the dividend has only been lifted by 5%.Instead of returning more cash to shareholders directly, the bank has decided to return cash through a £1.75bn share buyback. This equates to an extra 2.46p per share. Combined with the 3.21p dividend, it will take total shareholder returns for 2018 to 5.66p, or around 9.4%.That's not to be sniffed at. But the problem with buybacks is that unless you sell your shares, you don't see any extra cash in your pocket. So why is Lloyds' chief António Horta-Osório buying back shares instead of hiking the dividend?I suspect the answer has two parts. Firstly, the current dividend provides a yield of almost 5.4%, which is probably high enough to attract income investors. The second reason is that by returning surplus cash through buybacks, Horta-Osório is laying the groundwork for an uncertain future.If Lloyds has fewer shares in circulation, then it will be easier for the bank to generate earnings per share growth and to increase its dividend, even if profit growth slows.

[jpjohn1] 20/2/2019 17:06

No it was quite good news, not has good profits has expected but still good. We dropped a bit from our highs at about 3 pm. Going down .69p. If you are holding these shares it goes x- div on the 4th April . 2.14p paid on the 21st May. Good day for us. :)

[jacksonse] 20/2/2019 16:51

Good close. Hope to see it hold 60+ for a few days before any buying.
Nothing bad being reported?
John

[stonedyou] 20/2/2019 16:47

Where`s Sir Francis Drake when......you need him.....






Spain threatens to block EU plans to give Britons visa-free travel after a no-deal Brexit

•Spain threatens to derail visa-free EU travel for Britons even after no-deal Brexit

•Madrid demands Gibraltar to be defined as a 'colony' in legal deal agreement

•But proposal put forward by council of the European Union rejected by MEPs

•It means Britons could have to pay £52 (€60) for visa to visit a EU member state


Spain has threatened to block British citizens from having visa-free travel throughout the EU after Brexit as the row over Gibraltar resurfaced.

Legislation to give British travellers a visa-exemption was being discussed by the European parliament, after it was agreed in principle by negotiators on both sides.

If agreed the deal would mean that until 2021 there would be no need for a visa to visit any EU member state, even if the UK left the bloc without a deal.

But the plan could hit the rocks after Spain dredged up the issue of Gibraltar and insisted the territory was described as a 'colony' in the agreement presented to the European parliament.

Last month Spain's Prime Minister Pedro Sanchez sought to use the Brexit stand-off as an opportunity to open discussions over joint sovereignty of The Rock after Britain leaves the EU.

[toon1966] 20/2/2019 16:41

….RBS are offering a special dividend as well...

[cm44] 20/2/2019 16:30

Will be interesting to watch the share price over the next week or so.If it copies RBS,as that share ticked up generously after its results.

[k38] 20/2/2019 16:25

Todays share price top was 61.82

Now the market is about to close I can claim my price.

My 15/02 @ post 416 answer to m4rtinu Q
... was,

62p

Usually my predictions or opinion was to help others, not for showing off, so no more predictions or opinion in future share price.
I do not block people especially with different strong (rude) opinions
but I do block idiots like this 16/02 @ p 506 whom have nothing to say.
If you don't like what I have to say you can ignore me or block me.

[m4rtinu] 20/2/2019 16:16

Polar - as you say, PPI down markedly in Dec. And had been falling steadily from Apr/ May. Almost a non-issue now.

Politicos - how many MPs do you need a new "party" before they start falling out? What will Chuka Umunna do, if JC changes to supporting a 2nd referendum?

Lloyds fans - be interesting to see where share price finishes today. Although Brexit/ UK economy is a big deal for Lloy, it would be bizarre if markets decided buyback was a positive this time around, whereas last time they appeared to see it as a negative. Wouldn't it?

[polar fox] 20/2/2019 16:11

So the share price reached 61.82, not far from 62, and we're seeing some late-day profit-taking. Traders are paid to make money!

[chiefbrody] 20/2/2019 16:05

Lol. Good for you.I wont be at b/even till i retire (10-20 years) lol.

[1carus] 20/2/2019 15:53

TJ2 -- Uncle Arthur was/is a polite gent that contributed to the content of this thread in a positive way. Many on here enjoyed his light hearted banter and rocket gifs, that diku has referred to above, whenever the share price was looking like it was likely to rise. I suspect he doesn't tolerate fools and only looks in on the thread occasionally these days.

[bargainbob] 20/2/2019 15:51

Thanks guys for keeping the thread focussed on Lloyds Only a few exceptions . That got lost in the over all good exchanges .
Good day and a good future it seems for all long term holders .

[polar fox] 20/2/2019 15:39

Reasonable article, Knowing.

Holding dividend growth also has the advantage that, in the event of a recession, the dividend is less likely to need trimming. That is never good for a share. You can tell him.

[csalvage] 20/2/2019 15:33

I'm even @62.15 holding long term to pay my golf fees when I retire.

[cheshire pete] 20/2/2019 15:31

Happy days jpjohn and Knowing.