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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Lloyds Banking Group Plc | LLOY | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.44 | 0.86% | 51.78 | 16:35:05 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 50.26 | 49.62 | 53.20 | 51.78 | 51.34 |
| Industry Sector |
|---|
| BANKS |
| Top Posts |
|---|
Posted at 14/4/2024 12:39 by hardup1 20 dirt-cheap British stocks experts say could make you a fortune.7) LLOYDS BANKING GROUP (FTSE100) Ninety One's Ben Needham says Lloyds should offer investors 'an excellent cash return story' in the coming years. This will come in the form of a compelling dividend (2.76p a share in the 2023 financial year) and a strong share price return, driven in part by the company buying back its shares (reducing the number in issue), so increasing the chance of the shares going up in price. 'At the current share price,' says Needham, 'Lloyds shares should generate mid-teen annual returns for investors.' Another Lloyds fan is Interactive Investor's Richard Hunter. He says the bank's move to a more digital business (closing offices and branches) will 'reap rewards' in the form of improved margins (bigger profits). He is also encouraged by the bank returning to its previous reputation as a 'provider of large shareholder returns.' A 'progressive' dividend policy, adds Hunter, has resulted in an annual dividend equivalent to 5.4 per cent – 'tempting for income seeking investors.' The shares trade at around 51p. |
Posted at 07/4/2024 09:35 by scruff1 Dont blame Brexit - blame the worst government I think I have ever known. It wasnt Brexit that outlawed the paying of dividends to investors, reduced the CG allowance from £12,300 to £6000 and now £3000, abolished VAT relief on goods bought by tourists thus gifting that tourist trade to Paris and reducing the overall tax take (QED Laffer), imposed windfall taxes on energy companies thus ensuring a drop in N Sea investment, the exit of two energy companies and shaking confidence in investors in the UK per se, increasing Corporation Tax from 19% to 25%. It wasnt Brexit that has brought about the impending collapse of the London market and the introduction of the UK ISA underlines how pathetically banal they are. All this is typically socialist self inflicted damage whilst at the same time increasing the volume and ease of distributing support for the economically inactive. It really is no wonder that such an incompetent bunch has taken absolutely zero advantage of opportunities afforded by freedom from EU bureaucracy. Hopeless doesnt even start to describe them. And the experienced and dedicated socialists havent even got their families' pictures hung in their new offices yet. Anyone thinking of leaving Britain, now would be a good time. |
Posted at 20/3/2024 08:45 by freddie01 Is UK inflation is ‘finally coming to heel’? CPI data falls to 3.4% for FebruaryFigures published one day before the Bank of England’s Monetary Policy Committee meeting UK inflation fell from 4% to 3.4% in February this year, according to today’s Consumer Price Index (CPI) figures, which marks a lower-than-anticipat The largest contributor was falling food prices alongside the communication sector, although housing and fuel costs crept higher during the month. Zara Nokes, global market analyst at JP Morgan Asset Management (JPMAM), said: “Following a torrid couple of years for UK households, this morning’s inflation print is yet further evidence that the outlook for consumers is brightening. “More good news should be on the way with headline inflation likely to drop below the 2% inflation target in the Spring, but crucially, this is largely being driven by a transitory fall in energy prices. The Bank will instead be keeping a watchful eye on the medium-term inflation outlook, particularly the domestically-generat Looking over the coming months, industry commentators expect inflation to fall further still with the fall of energy bills. Tom Stevenson, investment director at Fidelity International, said: “Inflation is likely to continue dropping through the spring as cheaper gas and electricity from April drives household energy costs lower. The key unanswered question is whether, and by how much, price growth bounces back from target in the second half of the year – the Bank’s central expectation.” Lindsay James, investment strategist at Quilter Investors, added: “The plunge in energy bills anticipated in April could see an even greater fall in headline figures, aligning with the Office for Budget Responsibility&rsquo “However, economist forecasts for the medium term have considerable variance, highlighting risks that are still present around energy security, supply chain resilience and structural labour shortages.” Central bank expectations Despite today’s data, Stevenson said rates are expected to stay on hold “until June at least” and will “fall back only slowly from the current 5.25%”. “Inflation may briefly touch the Bank’s target in the next few months but is not expected to settle at 2% until 2026. “This means homeowners expecting a significant easing in mortgage rates this year face higher for longer borrowing costs. This will keep a lid on the nascent housing recovery that has seen prices stabilise in the past few months. “The UK stockmarket meanwhile, has lagged its rivals recently, and now looks good value as the economic and political backdrop improves.” James pointed out that medium-term economic forecasts vary widely, which highlights prevailing risks around energy security, structural labour shortages and supply chain resilience. “Wage growth has been a significant driver of inflation in the service economy for some months, and recent data showed this is now slowing a little. However, it will likely make the Bank’s 2% target more difficult to achieve,” she said. “This looks likely to remain a strong inflationary driver while there is an ongoing mismatch in the labour supply available and the level of demand on offer, with recent business surveys flagging that this pressure remains elevated and a cost they are passing through to customers in the form of price rises. “Similarly, ongoing disruption to international shipping continues to put pressure on supply chains amid higher freight rates and longer lead times.” Given signs that UK growth has returned – albeit modestly – the investment strategist said the inflation reading will “give a confidence boost to the Bank of England that inflation is now coming to heel”. “As it looks likely to fall further in coming months, with the 12% cut to the energy price cap kicking in from April, the Bank’s monetary policy committee will be under further pressure to consider rates cuts sooner rather than later.” Neil Birrell, chief investment officer at Premier Miton Investors and lead fund manager on the Premier Miton Diversified funds, added: “[Today’ JP Morgan’s Nokes said: “While the Bank of England will cheer the decline in the headline figure, it is unlikely to be convinced that the battle against inflation is won. “With regular wage growth north of 6% and services inflation still running hot, the Bank will need further evidence that domestic price pressures are cooling before it begins cutting rates.” Steve Matthews, investment director, liquidity at Canada Life Asset Management, said attention now turns to the Monetary Policy Committee’s two hawks, Jonathan Haskel and Catherine Mann, who voted for a rate hike last month. “The fall to 3.4% might alleviate some concerns, leading Haskel or Mann to shift to hold at tomorrow’s committee meeting and signalling that a June cut could be on the cards,” he reasoned. “They will, however, still be wary of the 9.8% National Living Wage rise coming into force in April and the potential of this feeding inflation. Our view remains that a first cut of 25 basis points in August is still the most likely scenario.” |
Posted at 23/2/2024 05:24 by the_owl88 Lloyds shares surge as motor finance issue splits analystsLast updated: 16:01 22 Feb 2024 GMT Lloyds Banking Group PLC LSE:LLOY Lloyds Banking Group Annual results from Lloyds Banking Group PLC (LSE:LLOY) saw the shares fall in early trading before surging higher from late morning, with investors and analysts seeing several positives in the numbers. On the downside, profits fell in the fourth quarter, but were in line with expectations despite a £450 million provision to cover potential costs of a motor finance probe from the Financial Conduct Authority. One car finance boss said the move by Lloyds, which operates Black Horse motor finance, "reads as a tacit acknowledgement of the scale of the car finance mis-selling problem", with the FCA probe highlighting this "sharp practice" and "systemic problems that tipped the balance too far away from consumer interests". Lloyds, the UK's largest high-street lender, also revealed that the FCA has opened an investigation into the group's compliance with UK money laundering regulations saying it is "not currently possible to estimate the potential financial impact, if any". Positives included capital returns, where a final dividend of 1.84p per share and a buyback of up to £2 billion meant £3.8 billion of returns have been declared for 2023, equivalent to 14% of the bank's market cap. Analyst Gary Greenwood at Shore Capital said the buyback was a positive surprise, as he felt it was "something [the board] may step back from given the uncertainty surrounding the motor finance review", which he thinks could cost the bank nearer £1 billion in the end. Max Georgiou, analyst at Third Bridge, said the FCA review "could present challenges in the future, Lloyds is thought to have the largest exposure across UK peers and could present a challenge in RoTE targets moving forward". The car finance provision is "a nasty detail which may be provoking some nervousness among investors", said Russ Mould at AJ Bell. “Anyone with memories of the PPI scandal will have doubts over whether the amount set aside so far will represent the final cost of dealing with this issue. Time will tell if £450 million represents the tip of the iceberg or an appropriately conservative assumption. Lloyds admits there is considerable uncertainty on this front." It was the "key news" for analysts at KBW, who said while it is "highly unlikely" to be the end of the story, it is "orders of magnitude below market fears" and the fact that the regulator approved a £2 billion buyback "does suggest that they are not expecting outsized charges later this year". UK banks are "clearly still not through the margin woods", the KBW analysts said, "the others have just stopped talking about it", but with Lloyds shares trading on 5.6 times 2025 earnings and 0.8 times book value, "it is hard to argue that it is not well reflected in the price". At UBS, analysts highlighted that fourth-quarter underlying PBT was 2% above the analyst consensus, driven by an impairment write-back from the repayment of a Daily Telegraph loan by the Barclay family, though pre-provision profit was 34% below forecasts, driven mostly by the motor finance charge. Net interest margins and CET1 capital levels were also lower than the consensus, UBS said, while the dividend was in line. 2024 guidance was "slightly below" the City consensus, the UBS analysts said, seeing a "low to mid-single digit downside to 2024 consensus PBT" due to lower net interest income and higher operating lease depreciation partly offset by lower impairments. Guidance for return on tangible equity – a key gauge of a company's profit efficiency – was guided to fall from 15.8% last year to circa 13%, which UBS said was as expected, with Lloyds saying it should recover to 15% by 2026. |
Posted at 21/2/2024 11:08 by jordaggy Joshua Mahony, chief market analyst at Scope Markets, says:HSBC represents the biggest drag on the FTSE 100, as shares in this banking giant tumbled in spite of their record full-year profits for 2023. Investors took a dim view of the $3 billion impairment charge associated with the bank’s Chinese investment, dampening sentiment around the Asia-focused bank. With continued concerns around the Chinese real estate sector, and global interest rates expected to fall, investors are taking a somewhat cautious approach after both earnings and revenues fell short of expectations. |
Posted at 20/2/2024 11:57 by porsche1945 Great quote from FT, “ bug-zapper “😂“Brexit hurt and got a lot of people to take their eye off the UK. The level of dysfunction the government has experienced over the years since has also been tough. All that uncertainty just turns off a foreign investor.” |
Posted at 01/2/2024 07:35 by freddie01 Bank of England expected to hold rates and warn on inflationBank of England policymakers are expected to hold interest rates at 5.25% when they meet today, but a rapid fall in inflation could mean a cut in the cost of borrowing comes as early as June. Analysts said revised forecasts for inflation were likely to show a steep drop in prices growth over the next six months, prompting bets in financial markets that the Bank’s monetary policy committee (MPC) will make several cuts to interest rates in the second half of the year. In a move to dampen speculation about an early rate cut, the governor Andrew Bailey is expected to say that wages growth remains strong and that this could prompt a resurgence of inflation. The escalating conflict in the Red Sea could also hit shipments of goods through the Suez canal, putting upward pressure on prices. Business surveys have shown that companies are more confident about revenues and profits this year and house price surveys have shown the property market beginning to recover from a period of stagnation. However, steep falls in energy and fuel prices from all-time highs last year are due to reduce household bills, lowering the overall rate of inflation this year and giving the Bank room to cut interest rates during the summer. Financial markets have already scaled back the possibility of dramatic cuts in interest rates this year. Until last month, investors were betting on six 0.25 percentage point reductions starting in May, which would push rates to below 4% by the end of 2024. Ahead of the MPC meeting, investors expected the Bank would carry out only four rate cuts from June. Analysts at Investec said the Bank would be even more circumspect than financial markets predict about an early move to reduce interest rates. “Our base case is that the MPC will cut rates three times this year, beginning in June, with the [main] rate ending this year at 4.50%.” Highly indebted businesses and households are likely to be disappointed by predictions of a slow path of interest rate cuts. S&P, the rating agency, has warned that many large corporations that were able to hedge their interest rate costs during the pandemic could find themselves unable to meet debt payments should rates still be high next year. Households that must refinance their mortgages will also be hit by higher bills. Mortgage rates have fallen over the last few months in response to speculation that interest rates will tumble. But this trend could reverse if rates stay high for a longer period. Karen Ward, chief market strategist for Europe at JP Morgan Asset Management, warned the Bank not to focus unduly on falling fuel costs and to resist interest rate cuts unless wages growth falls back. “If the labour market is still generating medium-term inflationary pressures, then cutting interest rates would be the wrong thing to do. Why? Sticky wage growth would be a sign that the labour market and broader economy is already at full capacity. “Falling inflation in itself could lead to a real wage boost and a re-acceleration in spending, above what the economy can cope with. Indeed, there is already some evidence of this re-acceleration in the business surveys. Adding rate cuts might further fuel the underlying capacity problem,” she added. |
Posted at 04/1/2024 10:17 by hardup1 BP, L&G, Lloyds and Tesla most bought shares for UK investors in 2023.BP PLC (LSE:BP.), Legal & General Group PLC (LSE:LGEN) and Lloyds Banking Group PLC (LSE:LLOY) remained the most bought shares by UK small private investors in 2023 on most platforms, though Tesla Inc (NASDAQ:TSLA), Nvidia Corporation (NASDAQ:NVDA) and other members of the so-called Magnificent Seven US tech megacaps were top of the list for others. Investment habits continued to vary greatly between DIY investors on different platforms, many of which seem to reflect distinctive demographic groups. Legal & General Group PLC (LSE:LGEN), Tesla Inc (NASDAQ:TSLA), Aviva PLC (LSE:AV.) and Lloyds Banking Group PLC (LSE:LLOY) were the top purchases on the Hargreaves Lansdown platform over the year. |
Posted at 04/10/2023 17:45 by hardup1 Legal & General Group PLC (LSE:LGEN), Lloyds Banking Group PLC (LSE:LLOY) and Aviva PLC (LSE:AV.) were among the most popular share purchases for UK retail investors in the past quarter, while India has also emerged as a popular theme.Despite interest rates from many banks savings accounts offering above 5% in recent months top dividend-paying blue-chip company shares remained in the most demand on investment platforms, amid another big year of investors payouts. Life insurers Legal & General (forecast yield 9.6%), Aviva (8.8%), Phoenix Group Holdings PLC (LSE:PHNX) (11.4%), along with banks Lloyds (6.4%), Barclays PLC (LSE:BARC) (5.6%) and HSBC Holdings PLC (LSE:HSBA) (8%) were all among the top-10 buys by the small investors that use the Hargreaves Lansdown and Interactive Investor platforms, the two largest in the UK. |
Posted at 01/8/2023 10:49 by jrphoenixw2 Telegraph, Questor column this morning: -'This bank is paying investors to wait for better times Questor share tip: despite interest rates soaring, Lloyds' share price performance has been sluggish By Dan Coatsworth 1 August 2023 • 6:00am One of the biggest banking names on the UK high street, Lloyds has millions of customers trusting it with their money and as a source of borrowing. In this context, it is no surprise the bank has been one of the most popular shares in Isas and pensions for decades. However, the fact its share price is still below pre-Covid levels implies investors need to think differently about the role of Lloyds in their portfolio. It is fair to suggest the sluggish share price performance is down to the mixed outlook for earnings. In theory, the sharp rise in interest rates should have supercharged profits for the banking sector. However, this year’s profit forecast for Lloyds is exactly the same as what it achieved in 2019 when interest rates were significantly lower than today. The analyst forecast is £7.5bn underlying pre-tax profit in 2023, falling to £7.3bn in 2024. Yes, that is a lot of money but a cynic might suggest the black horse has been sleeping in the stable rather than running through the meadow. Investors want profit progression. Four years ago, Lloyds’ shares were trading around 50p versus 45p today. Dividends were higher back then (3.37p per share in 2019), compared with 2.78p per share expected this year. If it were not for the big dividends then investors would have bolted long ago. So, what now? Investors need to give up on the idea they will make capital gains with the stock in the current environment. The shares trade on one-time tangible net assets – in a bull market for equities that is likely to be the floor, but it could also be the ceiling for Lloyds’ valuation heading into a potential recession. That the bank’s impairment charge for potential bad loans in the second quarter hit £419m versus £200m a year earlier suggests Lloyds is preparing itself for a tougher future. -------------- Lloyds key facts Market value £29.14bn Last full-year dividend paid (Dec 22): 2.4p Dividend yield (Dec 23E): 6.2pc (forecast dividend for 2023 is 2.78p) Revenue (Dec 23E): £18.7bn Pre-tax profit (Dec 23E): £7.5bn Loan to deposit ratio (Jun 23): 95.9pc Return on tangible equity (June 23): 13.6pc Common equity tier 1 ratio (Jun 23): 14.8pc PE ratio (Dec 23E): 5.9 (forecast EPS is 7.61p for 2023) -------------- The figure was a shock given analysts had forecast £371m in impairments for the quarter. Higher interest rates put more pressure on consumers and businesses and the consequences are still playing out. The prospect of a recession or slow economic growth means that Lloyds’ investors will have no choice but to focus on dividends, forecast to grow to 3.12p in 2024 and 3.52p in 2025. The latter implies a 7.8% yield on the current share price. Put simply, Lloyds is paying investors to wait for better times. Lloyds Banking Group is owner of The Telegraph. It has no involvement in editorial matters. Questor says: hold Ticker: LLOY Share price at close: 44.94p |
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