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M V
Controversial this but here go's anyway.
Having spent many hours in pubs a guy once told me this , when someone signs on the dole , universal credit stuff they are asked what savings and investments they have and the reason for asking that question is because they are not allowed to go look for it unless " drugs or terrorism " related.
M V
I said to my dad years ago when isa's came out and that you could only have one a year
His reply was whose checking .
Brixton
I know two people who took PPI out, they did it to just get money for holidays and betting, booze etc, taking the PPI was their way of ensuring they got the loans. Ended up skint the pair of them, but managed to claim a load back in the PPI repayments !. Being a loser in this country seems to pay off.
FTSE 100 and LLOY would be in the blue this afternoon , every dip gets bought so far
I borrowed the money from nationwide to buy my works van , manager asked me would i like insurance "ppi " thingy , no i said have a look at my isa ! , i was self employed it paid to borrow money but didn't go into a full explanation why, but i new it was Bob Hope or no hope of real cover . And that proved correct for many .
DOW Futures currently down -360 pts so looks like we slip back again this afternoon :-(
wandering star.
Those 71 billion shares will always weigh heavy on this share, in my view .
jcb208
And each year when filling in my tax form for the accountant he asks if I had received any PPI payments.
So anyone who did should they declare it to the tax .
The PPI scandal was not handled very well.I know some one who went bankrupt owing £45K and then got back over £30k in a PPI claim and kept it
Thanks Bertram
Big difference between PPI and the HBOS acquisition -PPI had no upside just a massive cost that rumbled on for nine years - pure incompetence at every level.
HBOS can still deliver remarkable value if the LBG can truly leverage their enormous scale. They could start with accelerating the rationalisation of the branch organisation where there is still far too much duplication across the group.
I only have one focus - drive the bottom line like hell and distribute the benefit to your long suffering shareholders.
Incorrect. Bonuses have not continued.
Last year Lloyds was the only UK Bank to pay no bonuses to staff whatsoever.
Wanderingstar,
"corporate screw-ups" You are right there. Lloyds purchase of HBOS was probably a bigger screw up. I feel lloy lurches from one screw up to another with the long time holder bearing the cost.
Interesting posts there.
Bertram
Your figures in the final para are broadly right - I am predicting an LBG value in excess of £70bn within two years. And you may also be right that there are much better opportunities out there - I just think this is an opportunity with relatively low risk and a lot of upside.
Perhaps where we may disagree is that PPI was an "oops" moment. IMHO PPI was one of the biggest corporate screw-ups in banking history. Not only in the mis-selling but in the complete surrender to unlimited liability in 2011. My understanding is that our previous CEO led the surrender and made a howling error in not only raising the white flag but he also accepted unqualified liability without time limit. I think it perfectly reasonable to assume that, with more capable negotiation, the authorities would have accepted a time limit cap of five years at the maximum. Golden rule in business never accept open ended liability without time limit. Our CEO broke the rule and we as shareholders incurred a quite horrendous cost.
So I sincerely hope that the PPI type error will never be repeated. If it is I will be the first to the exit.
SUF,
If you and others are happy with banks progress then I am happy for you. The future does look better but I have lost faith in banks.
ATB in your endeavours.
Wanderingstar,
Your reasoning is good however I and many others have been in and out of lloy since the crash. The bank and other banks for that matter have been my worst performers in my portfolio. They seem to issue promises then oops PPI comes along. Then more litigation followed by diversification. HMG then gets involved with windfall taxes. Covid appears then guess what, another reason to postpone divi. All the while bonuses have continued unabated. Am I wrong in thinking the share holder always seems to get the sh... end of the stick?
My whole thoughts are that there are better opportunities out there. People who retired in the early 2000,s may have been hurt by the lack of divi for over a decade. Some may have died never realising a return of their investment.
Your figures-
If share price rises 1p this adds £710 million to value of bank. looking for a rise to £1 means a rise of 54p.
54x £710 million = a rise in bank value of £ 38.34 Billion. Just can`t see it Tell me if I am wrong.
Thanks for reasoned post though.
Bertram
It is interesting to note that in an awful lot of LBG critiques the matter of the 71bn shares is routinely mentioned. This however causes me relatively little concern as long as the profitability comes through. LBG has underlying current profits of circa £8bn and has a current market cap of £32.9bnn which means it is trading at a multiple of 4.1 times its underlying EBITDA. In the PE world I am used to dealing in you routinely see multiples of 10x for an average SME accumulating £3m EBITDA. If you stand back from that it is a market nonsense brought about, in my view, for two primary reasons - firstly interest rates at 0.1% which, whatever way you cut it, will not last much longer and secondly, the sobering fact that this is an organisation that paid away £27bn in cash between 211 and 2020. What would the share price be if PPI hadn't happened and a large part of £27bn had been distributed?
So in looking at the 71bn shares and forming a view on the future, I think you have to divorce a large part of what has gone before because of the enormous cloud of PPI which I trust will not be repeated. I might be a simple fellow but the reason I stick with LBG is that, in my view, it is more than capable of producing underlying profits of £10bn plus in the near term and when the market recognises the future track the shares will be re-rated. IMHO it is quite possible that we will see a market cap of £70bn plus (just 7 times EBITDA of £10bn) and a share price in excess of £1 within two years. DYOR.
Bert
Lloyds Banking Group has already made Billions up to the 3rd quarter 2021
If you invested in funds, they actually also buy shares that pay dividends that's how they pay you dividends.
I personally choose to invest direct and run my own portfolio my fees are a little cheaper as well :-)
I happy to park my life savings here... As I Said before waiting to top up another 4000 shares ( excess dividend money I have not spent this year)
LTI, cheers and same to you.
Bert
Good luck with your investments
Bert
The answer is the same though - I don't get your drift
The point is you questioned my earlier statement, ''To pay 1p divi costs £710 million. Get my drift?''
My first post was heartfelt to all the people I have watched and read on this BB over the years including yourself. I wish no one any ill will. What ever we scribe here will make no difference to SP anyway. GL
bert
''71,000,000,000 (shares in issue) x1p = £710,000,000''
and the point is?
7,100,000,000 x 10p = £710,000,000 Is this not correct Bert ?
You are correct LTI, try this
71,000,000,000 (shares in issue) x1p = £710,000,000
I wondered who would spot the missing zero.
bert
7100,000,000 x 1p = £710,000,000 . Is this not correct LTI ?
NO
The "Elite" crashed the markets last friday with news of "variant" so bought. Rose monday so sold....repeat.