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Share Price Information for Lloyds (LLOY)

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Share Price: 54.80
Bid: 54.84
Ask: 54.88
Change: -0.84 (-1.51%)
Spread: 0.04 (0.073%)
Open: 55.66
High: 55.68
Low: 54.52
Prev. Close: 55.64
LLOY Live PriceLast checked at -

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Broker snap: Lloyds faces another fine, Investec keeps 'hold'

Thu, 06th Sep 2012 10:00

Investec says that the news of another regulatory fine at Lloyds should only have a little impact, seeing as though the banking group still has a lot of mis-selling issues hanging over its head.Media reports have said that Lloyds faces another referral to the FSA's Enforcement team. The news "may trigger little more than a shrug of resignation. For investors, we sense that this is the correct reaction to this particular event," said analyst Ian Gordon.He said: "The cost of redress for Lloyds's market-leading role in the mis-selling of financial products over the past two decades - e.g. pensions, endowment mortgages and PPI to mention just a few - will dwarf any fresh regulatory fine, alongside the gaping hole left in the Other Income line by lost PPI revenues that it is unable to fill."Lloyds has already taken £4.3bn in provisions for PPI (payment protection insurance) redress. The broker said that the PPI product alone contributed around 14% of the company's pre-crisis profits."We are expecting further provisions for redress to be taken in H2 2012e to include interest-rate swap mis-selling for which Lloyds is reportedly hiring 80 highly paid 'claims handlers' - company guidance 'not material' - as well as a top-up for Clerical Medical mis-selling in Germany."The broker has maintained its 'hold' rating and 36p target price for the stock.BC
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