"...If a firm’s capital ratio was projected to fall below the 4.5% CET1 ratio in the stress, there is a strong presumption that the PRA would require the firm to take action to strengthen its capital position over a period of time to be agreed between the firm and the PRA. Firms that are already taking action to strengthen their capital position may not be required to take further action if, after considering the results of the stress test, the PRA is satisfied that the measures currently in place are sufficient....."
I expect LLOY to come in at (Capital Core ratio Tier 1) 4.8% for the 2014 results. PASS. [In fact I don't expect ANY UK bank to fail the EBA test. I also still expect the stock to peak @ 77.8p on the 28th.
Light rain, gentle breeze +15. Relax this weekend.
the idiotic headline trading we are experiencing this month quality stocks seem to be put Reforming the market. Banks are doing well as are the house builders. Volatility has kept a lot of the " professionally managed" money sitting on the sidelines earning diddly squat. Hedge funds have had a dire year so far cis they were long commodities and probably short financials . Lloy has done well despite the turmoil which should make us all feel a little more comfortable hopefully AHO has some trinkets for us next week fingers crossed
Lloyds Banking Group is set to announce plans to cut about 10 per cent of its workforce next week as part of its new three-year strategy to make the UK’s biggest retail lender more digitally focused. The bank is expected to outline plans to cut about 9,000 jobs when it presents the new strategic plan next Tuesday with its third-quarter results, said people familiar with the strategy. The job cuts could be accompanied by news of whether Lloyds has received regulatory approval to restart dividend payments for the first time since the crisis. (Financial Times)
What happens Monday 27th to the SP? It's the day before a likely divi announcement so you might expect a rise in anticipation but the Euro bank stress test results across the Zone are to be announced on Sunday 26th with one in ten banks likely to fail and deemed to be in need of recapitalisation. Doesn't directly effect Uk banks but there is likely to be contagion if results worse an expected. Market will be between a rock and a hard place. Then when will the discounted city sale take place - presumably as soon after the 28th as the shares rise high enough so they can be sold at a discount at 75ish, the treasury desired price level. My guess the strategy document will announce a divi and also predict the divi for next year which should do the trick.
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