Member Info for hardup

Lloyds Banking Group PLC (LSE:LLOY) wraps up the FTSE 100 bank reporting season this coming Wednesday, with its shares having dropped 2.5% in the week running up to the release as investors digest numbers from its peers.

Closest rivals Barclays and NatWest reported strong figure, with income, margins and profits up.

Ahead of the results, analysts at Citi and UBS made Lloyds their top pick in the sector, suggesting the consensus near-term forecasts for interest income are “too low” and medium-term risks to “overstated”.

Without an investment banking arm to speak of, Lloyds makes all its money from retail and commercial banking.

So it has been key that as the Bank of England has raised interest rates since late 2021, Lloyds’ net interest margin – the profitable gap between rates on loans and savings – has crept up from under 2.5% to 3.22% in the final quarter of last year.

Like many of its peers, the bank’s management warned they expect NIM to drop in the first quarter but remain above 3.05% for 2023.

Citi suggested this was conservative, with the Q1 numbers and outlook commentary to reassure on NIM and the cost of risk.

Loan loss provisions will be worth watching out for, with impairments of £465mln and £668mln in the past two quarters for expected debt defaults.

The analyst consensus is for similar levels over 2023 to what was seen last year.

Analysts are also seeing scope for share buybacks, with Jefferies forecasting £3bn this year.

https://www.proactiveinvestors.co.uk/companies/news/1013636/lloyds-expected-to-wrap-up-banking-season-with-reassuring-update-1013636.html

Gazzleberry
"They have worked for the capital. They have not worked for the gain nor the dividend. My heart bleeds, not, for these wasters."
Most of these have worked hard all their lives and saved to fund their own retirement so as not to be a burden on the state or their families. Most of the ones you are defending are on benefits and chose this as a way of life because they are better of on benefits than working. Perhaps a fairer way for the government to achieve the savings required would be to cut benefits to the feckless scroungers WHO ARE ABLE TO WORK to give them more incentive to go out and get a job.

Gazzleberry

3rd May

Gazzleberry
"and then seeing posters whining about taxed on money that they haven't worked for. No, that makes me vomit."
They have worked for it, and saved their money to buy shares with to provide extra income to supplement state pension in retirement. And most would have been encouraged to invest in shares instead of putting money in savings accounts due to the dividend and capital gains tax allowances. So when these allowances are being reduced they have a legitimate gripe.

Primetime51
"A doubling dividends would send out a signal that banks are making too much."
Again I disagree. The profit is not £2B less if this is spent on a buyback. The profit is the same irrespective if this is paid as a £2B special dividend or a £2B buyback. Whatever way, either way is a return of £2B profit to shareholders.

Cardinal3
"A decent increase is good as it desnt stand out but doubling dividends would send out a signal that banks are making too much."
I don't agree with the logic of that argument. There is no distinction between having increased dividend payments, or a buyback. It is still profit being returned to share holders. So I can't see how having a £2B buyback will make it less likely the Government will have a tax raid on banks if they so wish.

After 44 trading days, buyback complete to date:
Total shares to date....................................................1,451,766,113
Aggregate cost to date... ........................................... £702,163,010.04
Average price paid to date.........................................48.366p
Percentage of £2 billion buyback completed...........35.11%

"We live in a Quantum Universe, so maybe we go where our imagination takes us, once we shed our mortal coils. Scientists don't even know if the Universe is real or a hologram, with Science getting closer to philosophy as it moves from the macro Universe and enters the Quantum realm, where all things happen at the same time and outcomes are determined by probabilities. Maybe God exists for some, and not for others, and the outcome is determined by belief; If I'm right, I'm banking on becoming a God when I eventually pop my clogs, but I'm probably both right and at the same time wrong in thinking that, lol."
Cue Chips to add to that. lol

Seems Lloyds SP only moves in sentiment with other Banks results when they are bad. Lloyds SP fell -5% on Barclays and Natwest Groups Final Results in February before Lloyds had even released their Final Results. Yet on the back of a good trading statement from Barclays whose SP is currently up +4.5%, Lloyds is up a mere +0.27%. See what happens when Natwest release their Trading Statement tomorrow.

I see Carltit is playing truant from nursery school again.

js88
Interim dividend will be declared at Half Year results on 26th July.

After 43 trading days, buyback complete to date:
Total shares to date....................................................1,431,092,655
Aggregate cost to date... ........................................... £692,074,362.53
Average price paid to date.........................................48.36p
Percentage of £2 billion buyback completed...........34.6%

PPI mis-selling cost around £32B I believe so good that is behind us. But I seem to be hearing more and more of "Mortgage miss-selling" now. I hope this is not going to morph into something on the scale of PPI mis-selling? There seems to be an ever growing number of law firms sprouting up online offering to pursue your claim that you were mis-sold a mortgage on a "No win, no Fee's" basis.

https://www.theclaimsguide.com/mortgage-claims

moxey
OK, most public sector Final Salary schemes have been replaced with your earnings over the number of years you have contributed, but, it is still a very generous defined benefit pension scheme which is index linked based on your average salary. Most Private Sector workers are in defined contribution schemes where the amount of pension you receive is dependant on the performance of the pension fund in which it is invested. And if you then use this to buy an annuity, you get a far lower annuity rate if you choose an index linked annuity.

Let's not forget Public Sector workers get a very generous index linked Final Salary based pension for life when they retire which those in the Private Sector can only dream of.

A1
"instead they 'chose' to spend all the spare cash over addressing a pension deficit......"
Correct me if I'm wrong but they have no choice over making payments to clear up the pension deficit, they have to do it. BT are in a similar position I believe.

Looks like another down day ahead for Banks when markets open!

First Republic Bank’s shares closed down 50% on Tuesday, a day after the mid-sized US bank announced a dramatic slump in deposits.

On Monday the San Francisco-headquartered reported a more than $100bn plunge in deposits in the quarter in the aftermath, sparking fears that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.

Amid the biggest turmoil to hit the banking sector since 2008, the bank now faces tough options to turn around its business with the creation of a “bad bank” or asset sales possibilities, a source familiar with the matter said, after the lender showed the extent of deposit flight during last month’s banking crisis.

https://www.theguardian.com/business/2023/apr/25/first-republic-bank-shares-fall

lti
"It has taken about 25 years to acquire my Lloyds average price."
How doe's that work when LBG was only formed in 2009.

After 42 trading days, buyback complete to date:
Total shares to date....................................................1,404,824,371
Aggregate cost to date... ........................................... £679,402,542.33
Average price paid to date.........................................48.362p
Percentage of £2 billion buyback completed...........33.97%