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The reason the Share Price is Dog Crap is so simple even idiots like LTI should understand this.
THE Bank makes money, THE BANK PAYS JACK CRAP BACK TO INVESTORS - THATS THE UNDERLYING ISSUE - NO CONFIDENCE THIS BOARD RESPECT THE SHARE HOLDERS NOTHING, NILCH.#
BUY BACKS FECCCKKIIING BUY BACKS - NOT AN ANOUNCE OF DIFFERENCE TO SHARE PRICE.
THEY USE THE DELTA IN REDUCTION IN SHARES TO PAY OUT TO MAKE IT LOOK LIKE THEY ARE PAYING MORE.
WAKE THE FEEECK UP AND GO GET LIVES THIS SHARE AND BOD DONT GIVE A RATS AAARRRRSE ABOUT ANY OF YOU.
IF YOU THINK THEY DO YOU ARE DILLUSIONAL INFACT FECCCKING DILLUSIONAL
Record profits - PATHETIC DIVI. BANKS PAYING MORE YES BANKS PAYING MORE AND YOUR MONEY STAYS STABLE
WHO IN THERE RIGHT MIND WOULD INVEST IN SUCH A COMPANY THAT RETURNS PEANUTS TO INVESTORS.
Osg
HSBC consolidating at near the base crested yesterday before hopefully progressing upwards once more - they are back to paying a high dividend paid on a quarterly basis. A good 'special' dividend should also be paid later in the year from the sale of it's Canadian operations
Let's put it into perspective. Lloyds making huge profits share price is 45 (because today is a good day). METRO is only 9p behind and yet it was close to bankruptcy not 3 months ago. If you believe this SP is not being managed, massaged or manipulated then your investment skills and knowledge are lacking and you should get out of the game ASAP. People will tell you this isn't so for various reasons but deep down even they know the truth. This donkey is fit for the dog food makers for at least 5 years.
GFC = Global Financial Crisis
'After the GFC, it was thought that the remuneration of bank executives was partly responsible for the leveraged position of banks. This is because many bank executives were paid variable remuneration in the form of annual cash bonuses or other types of remuneration like share options which were typically awarded every three years[8]. This was a short period of time to base executive performance given that banks manage long-term assets like mortgages. Further, both types of variable remuneration were dependant on executives maximising key metrics like earnings per share (EPS) or total shareholder return (TSR)[9]. To get the most variable remuneration possible, executives therefore leveraged their banks to raise EPS, TSR or other key metrics.'
Share buybacks = fewer shares
Fewer shares raises EPS even if earnings remain the same.
Total shareholder returns include buybacks
So the bod increases their bonus on both eps and shareholder returns by throwing shareholder monies at buybacks.
Meanwhile, shareholders are getting shafted by miniscule dividends.
What a gift this becomes when they dip the price.
Natwest, Barclays and Lloyds - all up on results. HSBC the only one to be avoiding due to China writedowns.
Imvho
It’s not theory fella, it’s fact. The share price has been subdued for other reasons.
Mar
'' but it has not worked in pushing up the sp . ''
the sole purpose is to reduce shareholder equity - BUT what would the price per share be with the current market cap and 30 Billion shares in issue
Cash is still king
Gateboy in theory i too agree but it has not worked in pushing up the sp . Now up 4% and climbing on pure profit and thas my point bud
NC
''BUT, the money spent by Lloyds on REDUCING the share count, then adds vaule to the company via the increase in share price,''
NO - the market adds or reduces the value of Lloyds. Whatever that value is, is split between fewer shares
Chid, I’m glad to see you recognise that buybacks increase the share price mathematically. Half the posters on here don’t understand that and blame buybacks for the predicament of the current share price. When the market decides where the price will be, they fail to appreciate that shares move for all sorts of reasons and then claim buybacks are not effective. It is pure naivety.
M64
''there sole purpose is to benefit the Bod''
Must be the third person today - how do you come to that conclusion?
''and aim to increase the shareprice significantly -this has clearly failed''
NO, the sole purpose is to reduce shareholder equity.
Unless the market puts a lower market cap on Lloyds, then the price per share at the end of a buyback programmer will be higher than at it's commencement.
Banks have been out of favour for years, it’s not just Lloyds. Covid, fears of a Labour government, recession fears and now this car finance nonsense have all weighed on Lloyds. Something always seems to come along. Reducing the number of shares seems an eminently sensible way of using excess capital when the share price is seemingly low.
Gate13Boy like your comments but not aggree good banter mate . (full stop)
Gateboy.
I am aware of how buybacks work in so much as Lloyds buyback the shares via whoever is handling such. BUT, the money spent by Lloyds on REDUCING the share count, then adds vaule to the company via the increase in share price, so the cost to them all thigs equal, should be zero.
Whereas IF they gave that cash as a dividend only, then clearly whilst many would 'reinvest' by buying more Lloyds shares, many would choose to spend it on other shares, or on holidays, cars, or a bag of buns, whatever, then taking that 'value' away from Lloyds as a company, which 'buybacks' do not (in theory).
Explaining the pay out to shareholders is due to the fact that inflation reduced the 'value' of any buybacks, so MORE buybacks would be needed to maintain the SAME level as the previous year in inflation ridden times, SAME for the dividend, which, as there are LOWER amounts of shares in issue (due to a year of buybacks) , then the amount paid on those lesser shares in issue OUGHT to rise on that fact alone, LET ALONE the lesser value of the divy from inflation, which needs to be taken into account too.
But like many on here, believe what you wish to, as, as with Lti, someone insulting their investment choice hurts, so flogging a dead horse trying to 'explain' to such.
Also try picking an argument with all the wrong positive posters on here. Plenty to chose from.
The share price rises on the buyback news then ebbs away on the countless bad news to come as the year until next full results will march on with a Labour Gov, FCA / HMG playing Robin Hood, and countless more impoverished adding to the UK's woes, as where it goes so does Lloyds.
Take nice profit Or wait till tomorrow
ITS ALL TO DO WITH PROFIT MARGINS ex you buy for a 1£ sell for what you can get i thnk its called buisness !!!! all other info is just sideline and i know lloys are making great profit margins as long as cost are down this will get better stuff the buy backs
Mararab
Correct
That's it
No worries. If you’d put a fullstop after the 1.84p, I’d have understood what you were saying better 👍
Gate13Boy the buy back has been going on for a few years and sp drops and drops explain that bud i can not
Mar
the next interim payable in September will not be dependent on what the base rate is. Unless there are extraordinary circumstances, the next interim should be about 1p
The Group also now expects to pay down to a CET1 ratio of c.13.0 per cent by the end of 2026.
William Chalmers..."We've looked at both the regulatory outlook, we've looked at the business risk reduction that has been embarked on over the last several years...and all of that adds up to the 13% CET1 target ambition that we have."
Both the £2bn buyback and the 2026 CET1 target reduction to 13% are expressions of confidence in the business.
I know my grammer is crap but my number crunching is ok aploagies for any mis read info but you know what imean
Oh dear. Here we go again 🙄 Shares move for all sorts of reasons. The share price would be lower had it not been for previous buybacks.
Why do you think the magnificent 7 in the USA use buybacks mainly instead of paying out dividends ?
Gate13Boy : i need to read mate i did not state that for intrim next year that wew as final for 2023