George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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On Wednesday 20th March2024 the Treasury Select Committee held an evidence session on retail banking. Giving evidence were Charlie Nunn, CEO, Lloyds Banking Group; Vim Maru, CEO, Barclays UK; Mike Regnier, CEO, Santander UK and Paul Thwaite, CEO, NatWest.
The subject of bank valuations came up and Charlie Nunn made a number of points.
Charlie Nunn: ... At the start of the year, we were all trading on average at 0.5 market to book. If we look at the equivalents for other countries, Europe would be nearer 1, though not all of the countries—
Q164 Keir Mather: It is a lot lower than pre-financial crisis.
Charlie Nunn: Yes. The US is at about 1.5. Canada is higher. In Australia, the Commonwealth Bank, which is a good organisation, is trading at 2.8 times. …What am I hearing from my investors? This is about investor views. There are primarily two things. The first is certainty around the UK economy. The good news around that is that in the last three months there seems to be a more positive outlook and more business confidence in the UK. There is a resurgence of international investors looking at the UK economy with a more positive outlook.
The more complex one is what they see as very significant uncertainty around the Government and the regulatory environment in the UK, which is materially different from other countries that they invest in. Of course, investors are only one stakeholder, but they do not have to invest in the UK and they do not have to invest in financial services. We have seen a very large number of investors decide not to support UK financial services. Those are the reasons.
A question to Mike Regnier produced this response
Mike Regnier: Thank you for the question…In our case, Santander Group operates in a number of geographies around the world. Equity and capital are pretty fungible. The decision that our group makes on almost a weekly basis is, “Where am I better putting my next euro of capital? Is it in the UK? Should I put it in Brazil? Should I put it in Mexico? Should I put it in the US? Where are we going to get the most return on that extra euro of capital?”
At the moment, in terms of the competitive nature of the UK, our tax rates are higher than many of the other countries that we, as a UK business, are competing with for internal capital within our group. The cost of fraud is borne by the banks in the UK. That is quite unusual globally. As a result of all those things, if I were the group, I would not necessarily be putting a lot more capital into the UK; I would be putting it in other places.
The full transcript of the session can be found using the link below.
https://committees.parliament.uk/oralevidence/14541/html/
Might be the best option HARDUP - I don't usually use it, only twice previously on the PHNX board for a pair of nut jobs called Porche and Toff
52p sales out of the way, back to onwards and upwards.
Lti
I got too much money sat doing nowt ........deliberately.......until next month 🤔
Brix
''cash holding in the Brokers just sat there doing nowt''
Time is money - could be a lot of wasted time waiting for a market crash.
I always have cash sitting with HSBC as I am continually being paid dividends.
About 9 this month.
" pearls of business wisdom" Lloyds is currently still undervalued, 60p sounds about right at the mo methinks.
NWG not sure with the Government sell off at some point ? . Other than a tiny £500 gamble on Metro Bank lol not holding anything else , cash holding in the Brokers just sat there doing nowt. Scroll through posts one doesn't want to read & stop whinging.
Thames Water , in hot water !
Wanderingon.
I cannot remember much inspired thinking coming from your direction .
Livepari
Give us your pearls of business wisdom!
Riskingit.....just filter the cretin.
Imaright give it a rest will you - If you're invested here enjoy the ride, if not go spout your bile elsewhere
livepari4 - "the chat board sounds so much more readable and better quality after i filtered about 15 users who would discuss topics totally unrelated to lloyds."
i quite agree. the numerous green lines indicate the ******, misogynistic, hate driven individuals, most of whom appear rooted somewhere in the mid-20th century, are still posting heavily. filtering not only makes it easy to avoid them but, by having no truck with their senseless and frequently ungrammatical drivel, can seriously improve one's quality of life.
Sell while you have a chance over 50.
Ignoring this blatant ramp fest here online by these numpties and Fools, the Lloyds SP will be back into the 30's after the government and Lloyds have screwed everyone in April's ISA with this high SP and after these buybacks have ended.
Here's another site with all the Daily moving averages for you.
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https://lse.swingtradebot.com/equities/LLOY:LSE
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Looking Very bullish
GLA
Https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=LLOY.L
PortfolioPower
Who is actually quoting what you have posted? Can you post a link to the site where this information can be seen?
"Signal Update
Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 16/02/2024, 40 days ago, when the stock price was 41.83. Since then LLOY.L has risen by +23.52%.
Market Outlook
The bulls are in full control.
The negative sentiment that led to the last bearish pattern has evaporated. The current price is quite distant from the confirmation level, so the probability of a bearish confirmation is very low.
Besides, the signal is suggesting to STAY LONG.
It is best to follow the signal and continue to hold this security. The Delayed Intraday Module is OFF"
Can you share those , all i read mainly is rubbish
The chat board sounds so much more readable and better quality after I filtered about 15 users who would discuss topics totally unrelated to lloyds.
Well done to all those contributing with their relevant posts.
This is the last post this month ,Lloyds Banking Group are Cheap as Chips 51.7p
I was going to hold price but the Powers to be have finally realised Lloyds Banking Group is undervalued , don't know if Market Manipulation or Not , but makes No Difference to me .
I have decided to Upgrade Lloyds to 80p which is only 16p above Pre Covid Price of 64p .
My opinion is Lloyds have been oversold and are in better position than 4 years ago with steady interest rates ,
Once our Politician decide to stop playing the Brexit has damaged the UK and get on with implementing what the people have voted for and stop trashing the country then there will be more confidence in UK.
Our Civil Service have done a great job too trashing the country.
The Conservatives will regret getting rid of Boris , Sunak is a busted flash.
Labour are No better too .
I have lost Complete trust with all the Muppets in parliament , they have brought a respectable parliament into the gutter .
They all need a boot up the @rse self serving muppets.
But taking all that on board , its helped me and others to buy this cheap as chips Stock from low 20,s ,so every cloud has a lining :)
Gold is looking good for $3000 and Silver is lagging and should bounce too.
Love & Light
Chips
80p end of year
PFP
Good luck to you your money your choice
I posted over on RR. Around a year ago that I saw it contimuing the momentum and hitting 400p+ with a P/E around 14 so my target there has been hit
I will be moving funds from there into LLOY.
whist the market is not pricing in fair value for the significant sustained free cash generated YoY here this is a buying opportunity.
I might not look obvious now, in the same way when this moved up c.400% post the 2008 crash from 21p to 83p but it will look obvious in 12-18months from now imo.
GLA
Of the Top 10 US based peer banks all are presently valued with P/E ratios between a P/E of 12.5 to a P/E of 18 with the mid point P/E of 15.25.
Lloyds is presently trading with a P/E 6.89 allowing plenty of room for the share price to put on some significant weight before it could be considered to be priced 'fairly' vs its US based counterparts.
Thing is US economy is doing well UK & Europe not so well
Of the Top 10 US based peer banks all are presently valued with P/E ratios between a P/E of 12.5 to a P/E of 18 with the mid point P/E of 15.25.
Lloyds is presently trading with a P/E 6.89 allowing plenty of room for the share price to put on some significant weight before it could be considered to be priced 'fairly' vs its US based counterparts.
The UK banking sector is long overdue what could be a major correction to the upside and should Lloyds SP continue the upwards momentum that has recently been seen to move toward a P/E ratio of even the most Conservatively priced US counterparts the shares would then be trading around 110p.
Even at that price, when benchmarked against its US based peers, it would still be difficult to argue that it would be overpriced at those levels.
BANK VALUATIONS
In the fourth quarter of last year, the major banks, such as NatWest, Lloyds, HSBC and Barclays had an overall core equity capital buffer of 14.7%, with an aggregate 3-month moving average liquidity coverage ratio of 147%, the BoE said.
However, the Bank will undertake a "desk based" stress test of lenders this year to check their resilience to shocks.
The FPC said it would maintain the countercyclical capital buffer - a rainy day reserve - for major UK banks at its "neutral" level of 2%.
Overall profitability of major banks is expected to remain robust but indicators of market value of their future profitability, such as average tangible price to book ratios, remain subdued, it said.
The FPC will publish further analysis of the ratios in June, echoing wider concerns in Europe at how valuations of banks lag those of U.S. rivals.