Less Ads, More Data, More Tools Register for FREE

Pin to quick picksLloyds Share News (LLOY)

Share Price Information for Lloyds (LLOY)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 54.18
Bid: 54.40
Ask: 54.44
Change: 0.12 (0.22%)
Spread: 0.04 (0.074%)
Open: 53.96
High: 54.42
Low: 53.30
Prev. Close: 54.06
LLOY Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

"Smaller and simpler" mantra rings through banking boardrooms

Fri, 24th Apr 2015 12:11

By Steve Slater

LONDON, April 24 (Reuters) - Deutsche Bank's expected moveto sell much of its retail banking business will see it join agrowing list of banks choosing to shrink and simplify tosurvive.

The benefits of size and reach, for years considered theholy grail of global banking, are now seen as being outweighed by the cost and complexity of running businesses across dozensof countries.

Many bank bosses have given up on trying to offer everythingto everyone. But as unwinding years of expansion provesdifficult, pressure for action has intensified, from politicianswho show little patience with institutions they consider too bigand complex and investors wanting more return on equity (RoE).

"The underlying economics for banks ... means being allthings to all people is too big a burden to sustain," said BillMichael, head of financial services in Europe at consultancyKPMG. He cited low RoEs, high operational risk and heftypotential costs from regulation.

After missing financial targets and racking up a raft ofregulatory fines and problems, Deutsche Bank's boardis expected to agree on Friday to sell retail arm Postbank and take a knife to its investment bank.

On the same day, HSBC's bosses responded toinvestor criticism over a string of misconduct scandals and weakprofitability by stressing how far they have shrunk andstreamlined the bank in the last four years. HSBC has alreadysold or shut 77 businesses and could yet dispose of bigoperations in Brazil or Turkey.

Credit Suisse's incoming CEO Tidjane Thiam isexpected to slash trading operations and pull back from otherareas, while Barclays chairman John McFarlane signalledon his first day on Thursday that he will also wield the knife.

The message is clear: bold action is on the cards to createleaner and simpler models, even after big cuts in recent yearsat Barclays, Credit Suisse, Citigroup, Morgan Stanley, UBS and Royal Bank of Scotland.

"NOT A SCRAP OF EVIDENCE BIGGER IS BETTER"

Pressure for banks to be cut down in size has built sincethe global financial crisis, which was preceded by a frenzy ofmergers and acquisitions of the kind that briefly made RBS oneof the world's biggest banks.

Bank of England chief economist Andy Haldane said in 2009"there is not a scrap of evidence of economies of scale or scopein banking -- of bigger or broader being better".

Politicians worry that large and complex banks can missproblems, struggle to instill a common culture and are just toohard to manage.

Efforts by some national regulators to limit capitaloutflows have also encouraged lenders to quit countries in whichthey lack scale.

Investors, too, are questioning the benefits of size as theylose patience with promises that returns will recover. Andvaluations reflect their preference for simpler firms.

Wells Fargo, which focuses mainly on U.S. retail andcommercial banking, is now the world's biggest bank by marketvalue. Its shares trade at 1.6 times book value, compared to anaverage for U.S. banks of close to book value.

Lloyds focus on UK retail and commercial lendinghas helped its shares trade at a big premium to rivals, whileDeutsche Bank trades at just 0.6 times book value, even after arally since its plans for an overhaul emerged.

"SYSTEMICALLY IMPORTANT"

The main challenge for bosses is how far to go.

Most banks want to continue offering a range of services --from personal savings accounts to takeover advice for companiesand telling rich clients how to invest -- but to fewer clients.

Some bankers argue that simplification reverses two decadesof globalisation that have benefited trade and finance, andcould leave just three truly global banks -- HSBC, JPMorgan andCitigroup.

JPMorgan has rejected calls for its breakup, saying scalehas always "defined the winner" in banking. It says not havingto duplicate audit functions or cybersecurity for the thousandsof clients that use more than one part of the bank saves it $18billion a year.

But demands that 30 'systemically important' banks hold morecapital, and the more intense regulatory scrutiny they face,also throw into question the benefits of scale.

The list of banks and their capital requirements are judgedannually on five criteria, including size, international reachand complexity.

Lloyds is not on the list and Wells Fargo's capitalsurcharge is 1 percent of risk-weighted assets, well below the2.5 percent HSBC and JPMorgan must hoard in case of losses -- inboth cases an extra $30 billion or more of capital.

One carrot from regulators is that surcharges can be reducedif banks simplify, as happened with UBS and Credit Agricole last year. (Editing by Catherine Evans)

More News
14 Jun 2024 20:54

Acuity RM loss widens; names new finance director

(Alliance News) - Acuity RM Group PLC reported Thursday a widened yearly loss on a rise in costs.

Read more
13 Jun 2024 10:45

Britain's Lloyds Bank consolidates London offices

LONDON, June 13 (Reuters) - Lloyds Banking Group will leave one of its London office sites as part of a consolidation into three remaining premises, the British bank said on Thursday.

Read more
12 Jun 2024 12:08

LONDON MARKET MIDDAY: London up ahead of US Fed and inflation data

(Alliance News) - Stock prices in London were higher at midday Wednesday, ahead of an interest rate decision and inflation data from the US.

Read more
10 Jun 2024 15:36

Britain's payments industry calls for delay and cut in scam compensation rules

LONDON, June 10 (Reuters) - Britain's payments sector on Monday called on its regulator to roll back and delay by a year tough new compensation rules due to start in October, saying that "significant changes" were needed to avoid damaging competition.

Read more
10 Jun 2024 14:07

Britain's payments industry calls for delay and cut in scam compensation rules

LONDON, June 10 (Reuters) - Britain's payments sector on Monday called on its regulator to roll back and delay by a year tough new compensation rules due to start in October, saying that "significant changes" were needed to avoid damaging competition.

Read more
7 Jun 2024 12:05

LONDON MARKET MIDDAY: Europe on the back foot as US jobs report looms

(Alliance News) - Stocks in London retreated on Friday ahead of the US jobs report, leaving the FTSE 100 on track for a fourth consecutive weekly loss.

Read more
31 May 2024 12:59

CORRECT: Watchdog launches inquiry into Nationwide buy of Virgin Money

(Clarifying the acquisition is in cash.)

Read more
31 May 2024 10:03

UK watchdog launches inquiry into Nationwide-Virgin Money merger

(Alliance News) - The Competition & Markets Authority on Friday said it had opened an inquiry into Nationwide Building Society's acquisition of Virgin Money UK PLC, on the grounds that the move could hurt banking competition in the UK.

Read more
31 May 2024 08:34

UK competition watchdog probes Nationwide-Virgin Money deal

May 31 (Reuters) - Britain's competition regulator said on Friday it had started a probe into Nationwide Building Society's proposed 2.9 billion pound ($3.7 billion) all-cash deal to buy Virgin Money UK.

Read more
23 May 2024 10:44

IN BRIEF: Lloyds Banking to redeem USD1.5 billion senior notes

Lloyds Banking Group PLC - Edinburgh-based lender - Issues notice of redemption for entire USD1.50 billion outstanding principle amount of its 3.870% senior callable fixed-to-fixed rate notes due in 2025. Says the outstanding notes will be redeemed on July 9 at 100% of the principle amount together with any accrued but unpaid interest. The notes' listing on the New York Stock Exchange will be cancelled on or shortly after that date.

Read more
16 May 2024 13:05

Activists disrupt Lloyds Bank shareholder meeting

LONDON, May 16 (Reuters) - Activists disrupted Lloyds Banking Group's annual shareholder meeting in Glasgow on Thursday, protesting against the bank's alleged provision of financial services to defence firms linked to violence in the Middle East.

Read more
16 May 2024 11:16

Activists disrupt Lloyds Bank shareholder meeting

LONDON, May 16 (Reuters) -

Read more
14 May 2024 16:18

UK dividends calendar - next 7 days

Wednesday 15 May 
Capital Ltddividend payment date
Grit Real Estate Income Group Ltddividend payment date
Jardine Matheson Holdings Ltddividend payment date
Just Group PLCdividend payment date
Rentokil Initial PLCdividend payment date
Thursday 16 May 
abrdn Property Income Trust Ltdex-dividend payment date
Alternative Income REIT PLCex-dividend payment date
Aquila European Renewables PLCex-dividend payment date
Balfour Beatty PLCex-dividend payment date
BlackRock Latin American Investment Trust PLCdividend payment date
BP PLCex-dividend payment date
Bunzl PLCex-dividend payment date
Churchill China PLCex-dividend payment date
EJF Investments Ltdex-dividend payment date
Essentra PLCex-dividend payment date
Fevertree Drinks PLCex-dividend payment date
FRP Advisory Group PLCex-dividend payment date
Greencoat UK Wind PLCex-dividend payment date
GSK PLCex-dividend payment date
Haleon PLCdividend payment date
Henderson Opportunities Trust PLCex-dividend payment date
Income & Growth VCT PLCex-dividend payment date
Irish Continental Group PLCex-dividend payment date
James Halstead PLCex-dividend payment date
Jarvis Securities PLCex-dividend payment date
Kingfisher PLCex-dividend payment date
M Winkworth PLCdividend payment date
Majedie Investments PLCex-dividend payment date
Manx Financial Group PLCex-dividend payment date
Mercantile Investment Trust PLCdividend payment date
Morgan Sindall Group PLCdividend payment date
Murray Income Trust PLCex-dividend payment date
Ocean Wilsons Holdings Ltdex-dividend payment date
Octopus Renewables Infrastructure Trust PLCex-dividend payment date
PageGroup PLCex-dividend payment date
Pershing Square Holdings Ltdex-dividend payment date
Princess Private Equity Holding Ltdex-dividend payment date
Property Franchise Group PLCex-dividend payment date
Prudential PLCdividend payment date
RHI Magnesita NVex-dividend payment date
Shell PLCex-dividend payment date
Spectris PLCex-dividend payment date
Supermarket Income REIT PLCdividend payment date
Target Healthcare REIT PLCex-dividend payment date
TClarke PLCex-dividend payment date
Tesco PLCex-dividend payment date
TwentyFour Select Monthly Income Fund Ltdex-dividend payment date
Unilever PLCex-dividend payment date
Vaalco Energy Incex-dividend payment date
Vector Capital PLCex-dividend payment date
Witan Investment Trust PLCex-dividend payment date
Friday 17 May 
AB Dynamics PLCdividend payment date
Barratt Developments PLCdividend payment date
Breedon Group PLCdividend payment date
Cairn Homes PLCdividend payment date
Direct Line Insurance Group PLCdividend payment date
Drax Group PLCdividend payment date
Finsbury Growth & Income Trust PLCdividend payment date
IMI PLCdividend payment date
Impact Healthcare REIT PLCdividend payment date
JPMorgan Japan Small Cap Growth & Income PLCdividend payment date
JPMorgan US Smaller Cos Investments Trust PLCdividend payment date
Kenmare Resources PLCdividend payment date
Luceco PLCdividend payment date
Morgan Advanced Materials PLCdividend payment date
Primary Health Properties PLCdividend payment date
Seneca Growth Capital VCT PLC - Class Bdividend payment date
Standard Chartered PLCdividend payment date
Monday 20 May 
Airea PLCdividend payment date
Ascential PLCex-dividend payment date
hVIVO PLCdividend payment date
Invesco Bond Income Plus Ltddividend payment date
Jupiter Fund Management PLCdividend payment date
Murray International Trust PLCdividend payment date
Tuesday 21 May 
Bridgepoint Group PLCdividend payment date
HgCapital Trust PLCdividend payment date
Lloyds Banking Group PLCdividend payment date
Old Mutual Ltddividend payment date
  
Comments and questions to newsroom@alliancenews.com
  
A full 14-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
9 May 2024 15:49

UK shareholder meetings calendar - next 7 days

Friday 10 May 
Cairn Homes PLCAGM
Derwent London PLCAGM
Diversified Energy Co PLCAGM
Hutchmed China LtdAGM
Irish Residential Properties REIT PLCAGM
Kenmare Resources PLCAGM
Rightmove PLCAGM
Serinus Energy PLCAGM
Standard Chartered PLCAGM
Wheaton Precious Metals CorpAGM
Monday 13 May 
88 Energy LtdAGM
888 Holdings PLCAGM
hVIVO PLCAGM
Kore Potash PLCAGM
Tuesday 14 May 
Aptitude Software Group PLCAGM
Chesnara PLCAGM
Cirata PLCAGM
Computacenter PLCAGM
EKF Diagnostics Holdings PLCAGM
FDM Group PLCAGM
Henderson High Income Trust PLCAGM
Kakuzi LtdAGM
Luceco PLCAGM
Midwich Group PLCAGM
Phoenix Group Holdings PLCAGM
TI Fluid Systems PLCAGM
Wednesday 15 May 
Accrol Group Holdings PLCGM re takeover by Navigator Paper
Aura Renewable Acquisitions PLCAGM
Barratt Developments PLCGM re takeover of Redrow PLC
Bridgepoint Group PLCAGM
Burford Capital LtdAGM
Conduit Holdings LtdAGM
Funding Circle Holdings PLCAGM
Gama Aviation PLCGM re tender offer
GCP Asset Backed Income Fund LtdAGM
Greggs PLCAGM
IQGeo Group PLCAGM
Literacy Capital PLCAGM
Marshalls PLCAGM
Mpac Group PLCAGM
Redrow PLCGM re takeover by Barratt Developments PLC
Renewables Infrastructure Group LtdAGM
Savills PLCAGM
Seneca Growth Capital VCT PLCAGM
Spirax-Sarco Engineering PLCAGM
St James's Place PLCAGM
TP ICAP Group PLCAGM
Vesuvius PLCAGM
Thursday 16 May 
Ceres Power Holdings PLCAGM
ConvaTec Group PLCAGM
Costain Group PLCAGM
Eurocell PLCAGM
Global Opportunities Trust PLCAGM
Gresham Technologies PLCGM re takeover by STG Partners funds
H&T Group PLCAGM
Ibstock PLCAGM
Just Eat Takeaway.com NVAGM
Lloyds Banking Group PLCAGM
M&C Saatchi PLCAGM
Michelmersh Brick Holdings PLCAGM
Next PLCAGM
Predator Oil & Gas Holdings PLCAGM
PYX Resources LtdAGM
Restore PLCAGM
RTW Biotech Opportunities LtdAGM
Secure Trust Bank PLCAGM
Seplat Energy PLCAGM
Triple Point Social Housing REIT PLCAGM
Tyman PLCAGM
Unite Group PLCAGM
Vector Capital PLCAGM
Vistry PLCAGM
WAG Payment Solutions PLCAGM
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
9 May 2024 09:53

LONDON BROKER RATINGS: NatWest target raised, other lenders backed

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and Wednesday:

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.