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fleccy/livestock,
"""A £1 Billion share buyback covers the number of extra shares they've issued over the last year, or two; This is what's increasing the number of shares"""
The total shares issued over the last 2 years will be 516,000,000 according to the information fleccy posted with the 3 RNS. So if Lloyds do go ahead with a £1 billion buyback, so lets assume even if the price paid for the shares averages 70p, £1 billion would purchase 1,428,571,428 shares which would be cancelled. That would almost 3 times the amount of new shares issued, so the net result would be lowering the total shares in issue by 1 billion shares. If they get their act together and start buying the shares back at around current share price then it would be an even larger amount of shares purchased and cancelled. That looks OK to me.
fleccy
"""A £1 Billion share buyback covers the number of extra shares they've issued over the last year, or two; This is what's increasing the number of shares"""
Good point fleccy, In order for buybacks to work they have to reduce the share count, a lower share count means a higher ESP,
Lloyds investors lose out again Antonio did the same and now its looking like the new CEO is doing the same
SGK.... chucking trades at me only confirms to me that you are nothing but a Scatter Gun Merchant. A gambler who talks about the 20/1 he got at the Lockinge Stakes in 2020. Not a serious or disciplined Investor. And certainly not a long term one.
"Fleccy
Too many shares in circulation for the buybacks to be really effective. I can not see it making much of a difference.
What happened to the progressive dividend policy?"
They've obviously decided to make it a regressive progressive dividend policy lol.
A £1 Billion share buyback covers the number of extra shares they've issued over the last year, or two; This is what's increasing the number of shares:
"LLOYDS BANKING GROUP PLC - BLOCK LISTING OF SHARES
Application has been made to the UK Listing Authority and the London Stock Exchange for a block listing of 70,000,000 ordinary shares of 10p each in Lloyds Banking Group plc (the "Company"), comprising 20,000,000 shares for the Lloyds Banking Group Deferred Bonus Plan 2008 and 50,000,000 shares for the Lloyds Banking Group Executive Group Ownership Share Plan 2016 (together the "Plans"). These shares will be allotted to trade on the London Stock Exchange and be admitted to the Official List upon allotment pursuant to the Company's obligations under the Plans. Participants in these Plans will become entitled to these shares following the vesting of share awards or the exercise of share options in accordance with the relevant Plan rules. These shares will rank equally with the existing issued ordinary shares of the Company. Admission of the shares is expected on 26 February 2020."
https://www.londonstockexchange.com/news-article/LLOY/block-listing-of-shares/14435601
" LLOYDS BANKING GROUP PLC - BLOCK LISTING OF SHARES
Application has been made to the UK Listing Authority and the London Stock Exchange for a block listing of 355,000,000 ordinary shares of 10p each in Lloyds Banking Group plc (the "Company"), comprising 250,000,000 shares for the Lloyds Banking Group Deferred Bonus Plan 2008 and 105,000,000 shares for the Lloyds Banking Group Share Incentive Plan (together the "Plans"). These shares will be allotted to trade on the London Stock Exchange and be admitted to the Official List upon allotment pursuant to the Company's obligations under the Plans. Participants in these Plans will become entitled to these shares following the vesting of share awards or the exercise of share options in accordance with the relevant Plan rules. These shares will rank equally with the existing issued ordinary shares of the Company. Admission of the shares is expected on 20 May 2020."
https://www.londonstockexchange.com/news-article/LLOY/additional-listing/14545375
https://www.londonstockexchange.com/news-article/LLOY/block-listing-of-shares/14880972
Fleccy
Too many shares in circulation for the buybacks to be really effective. I can not see it making much of a difference.
What happened to the progressive dividend policy?
"In fact they ignored the question. They spoke about headwinds in 2022 but no detail so how much special they can afford is anyone's guess. I am hoping for 1p =£700m."
If the guy in the webinar is correct, it's pretty disgraceful that they've reinstated the dividend at a significant reduction to the 2018 dividend of 3.21p, especially considering the 2019 dividend was on target for 3.6p. If he's correct, the best we can hope for is a 2p dividend for FY21, a significant discount to the FY19 projected dividend of 3.6p. Don't get me wrong, It isn't like I'm going to sell my holding because of this, but they appear to have used Covid as an excuse to change the strategic direction of the bank, at the expense of shareholder dividends. Hopefully their 2021 strategic review gamble will pay off, and be reflected in the share price, since dividend investors are seeing reduced income to finance this. As far as the buyback, a £1 Billion share buyback isn't going to make much difference with 71,022,593,135 ordinary shares currently in issue; On the 31 January 2020 70,285,353,360 ordinary shares were in issue, so although a £1 Billion share buyback will bring the shares in issue down below this, it wont be significantly below that.
Stroller. Having now watched the webinar I would agree with that. Ord div clear (2x interim). Will do a buyback of around £1bn perhaps a bit higher. Personally I think there will be a special div to top up to an overall 3p rate for divs - so as you suggest around 1p.
The capital headwinds were not explained beyond adding £15-20bn of RWAs on 1 Jan 2022. A good deal of that will be reduction in IFRS 9 transitional relief but not all. Not sure what the rest would be.
Also confirmed that expansion activities would not consume much capital.
Marab: Short of a RNS LLOY could not make it any clearer. Final dividend is based on 1/3 , 2/3 so Final will be in the region of 1.3p . Buy backs will be in the region of £1b total roughly £2b. That leaves open the question of a special dividend. On which LLOY were non committal. In fact they ignored the question. They spoke about headwinds in 2022 but no detail so how much special they can afford is anyone's guess. I am hoping for 1p =£700m.
All the above my interpretation of the December Webinar and does not represent advice.
SS
You still have so much to learn.
longtimeinvestor
Posted in: RDSB
Posts: 14,023
Price: 868.70
No Opinion
Just bought28 Oct 2020 08:19
at just under 860p
You shooting up the Saloon Bar, Scatter Gun?
hu
''harassed''
I refer you to your 13.58 post
lti
more like typical of someone fed up of being harassed by a pretentious tw@
lloyds can afford to pay 3p divi and do a buy back
i want a nice divi instead
Lloyds has more than £4bn in surplus capital and rivals Barclays, HSBC and Standard Chartered all bought back shares last year
Lloyds Banking Group PLC -
Lloyds Banking Group PLC (LSE:LLOY) is expected to announce a £1bn share buyback programme that will start next month, according to a news report.
hu
typical from someone stumped
lti
fook off
hu
?
How does that work?
You didn't see my post you say where i corrected MYSELF.
It was YOU who made the 13.58 post (pedantic)
lti
Not at all, it looked to me as though you had your "pedantic head" on again today.
hu
I guess it was you trying to be a smartass rather than letting the obvious typo/mistake go.
lti
I did not notice at the time.
hu
re 13.58
did you miss the post just before - mine - a correction.
"The article reported in the Mail by a "Financial Journalist" states "Analysts are forecasting that the dividend will amount to 1.99p a share"
Seems low to me, the dividend should be reinstated, at the very least, pre-covid levels with a special tagged on, or a share buyback anouncement.
2018 interim was 1.07p, with a Final of 2.14p, Total 3.21p; If Covid hasn't impacted the banks Financial state, then they should aim for at least the 2018 Dividend. The 2019 interim was 1.12p, so the Final would likely have been higher that year, if Covid hadn't happened.
lti,
The article reported in the Mail by a "Financial Journalist" states "Analysts are forecasting that the dividend will amount to 1.99p a share"
''financial journalist''
or analyst