Member Info for hardup

SUFC and Chips..........the Lloyds BB cheerleaders.

60,000,000 for the employee share incentive plan and 125,000,000 for the employee group share save scheme. We just have to accept that Lloyds like many other company's have these schemes for employee's to retain staff.

Another 185 million new shares to be issued 9th December!

You been on the naughty step?

Morocco just dumped Spain out on a penalty shoot out. lol

JP Morgan updated its targets for UK banks today. All got an upgrade and raised target prices except Lloyds which the broker has downgraded?

JP Morgan raises Standard Chartered target to 800 (770) pence - 'overweight'

JP Morgan raises HSBC price target to 570 (530) pence - 'neutral'

JP Morgan raises Barclays to 'overweight' (neutral) - price target 220 (180) pence

JP Morgan raises NatWest price target to 310 (300) pence - 'neutral'

JP Morgan cuts Lloyds to 'neutral' (overweight) - price target 58 pence

A former Barclays
BARC
0.09%

executive who joined the board of Lloyds Banking Group
LLOY
0.51%

last month has spent £200,000 making one of the lender’s biggest insider purchases of the year.

Cathy Turner’s investment, which took place on Wednesday at a price of 46.9p, follows her appointment as a non-executive director at the start of November.

It was the biggest purchase by a board member since Lloyds chair Robin Budenberg bought 500,000 shares in the aftermath of February’s annual results at a price of 47.4p.

A former Barclays
BARC
0.09%

executive who joined the board of Lloyds Banking Group
LLOY
0.51%

last month has spent £200,000 making one of the lender’s biggest insider purchases of the year.

Cathy Turner’s investment, which took place on Wednesday at a price of 46.9p, follows her appointment as a non-executive director at the start of November.

It was the biggest purchase by a board member since Lloyds chair Robin Budenberg bought 500,000 shares in the aftermath of February’s annual results at a price of 47.4p.

Turner also serves on the boards of fellow FTSE 100-listed stock Rentokil Initial
RTO
0.37%

, where she heads the remuneration committee, and instrument technology business Spectris
SXS
0.06%

.

Last week’s purchase by Turner came at the end of a month in which Lloyds shares have shown signs of momentum. They rose 10% in November but remain within this year’s 40p and 50p range, despite the significant boost to margins from higher interest rates and evidence of resilience in the jobs market.

Fears over a house price slump have dampened investor enthusiasm towards the Halifax mortgages owner, even though many City analysts argue that UK banks are fundamentally different from a lending risk perspective than in past cycles.

UBS’s Jason Napier has Lloyds as his top pick in the UK banking sector and believes shares should be trading at 70p. He said the third quarter earnings season had exposed some attractive valuations in a UK banking sector that trades on 5.5 times forecast earnings.

He is particularly positive on Lloyds due to a yield of 5% and the potential for February’s annual results to include a shares buyback of £2.25 billion worth 7% of market value.

https://www.ii.co.uk/analysis-commentary/insider-big-lloyds-bank-share-trade-ftse-100-boardroom-veteran-ii526196

The current Tories are about as much Tory as Tony Blairs Labour was Labour.

Lloyds Banking Group’s £52 billion staff pension fund was forced into fire sales of equities and faced collateral calls of billions of pounds at the height of the gilts market crisis, according to unusual evidence tabled in parliament.

Henry Tapper, a pensions expert who gave evidence to the work and pensions committee last week, made a written disclosure in which he referred to his partner, Stella Eastwood, who is head of group pensions at Lloyds.

While not directly naming Eastwood or Lloyds, Tapper lifted the lid on what appears to have been a difficult time for the Lloyds scheme as gilt prices slumped in the wake of the badly received mini-budget in September.

He wrote that the scheme was forced “to liquidate a large proportion of its equity holdings” as the crisis raged, adding that “much of the money posted as collateral won’t be seen again”.

The Lloyds scheme, like most traditional pension schemes, engages in liability driven investment (LDI), which is intended to match scheme assets with liabilities, but which was found to be flawed as schemes faced heavy collateral calls to keep their hedges in place. The scheme is one of the largest in the country by assets and responsible for paying the pensions of 345,000 people.

In his evidence, Tapper wrote: “I live with the CEO of a large DB [defined benefit] plan which needed to liquidate a large proportion of its equity holdings.” He added “the scale of the collateral call ran into billions of pounds”.

Lloyds assured shareholders in late October: “The impact of recent volatility has had no material impact on the funding position of the pension schemes.” But John Ralfe, an independent pensions expert, said: “The trustees of this plan should formally explain to members what has happened.” Tapper last night retracted an additional claim he had made that the scheme had sought a line of credit from Lloyds.

https://www.thetimes.co.uk/article/lloyds-pension-fund-in-equity-fire-sale-amid-the-gilts-crisis-0kmw375lk

https://uk.finance.yahoo.com/news/why-did-lloyds-share-price-153349650.html

Larger than normal volume for the UT today.....59,367,456 @ 46.13p

DOW now surrendered a large proportion of yesterdays gains.

The chief executive of Lloyds Banking Group has warned that political uncertainty, regulatory costs and a lack of focus on competitiveness in the UK are holding back international investment in the country’s banks.

“There is nervousness at the moment about the UK?.?.?.?around the lack of stability that we’ve had,” said Charlie Nunn at the Financial Times’ global banking summit on Tuesday.

Nunn visited US investors the week after former chancellor Kwasi Kwarteng’s disastrous “mini” Budget in September and found the budget had caused a “significant drop off in certainty”. He also heard “concerns about the UK as an investment thesis”.

The Lloyds boss added that divergent economic prospects between the US and the UK — including on productivity growth and balance of trade — would also hamper investment in the medium term.

The UK financial services sector had suffered from an additional longer-term discount, he said, caused by large fines — such as the £790mn in charges Lloyds took last year relating to historical fraud at HBOS, which it owns — and a focus on restructuring and implementing regulation over the past 13 years.

“Capital investments have gone to those things rather than innovating and driving growth,” said Nunn.

However, he added that the emphasis on competitiveness in the Financial Services and Markets bill at present working through the House of Commons was welcome, saying it “hasn’t been the focus of the last decade”.

Nunn said that Lloyds was not going to “take advantage” of the lifting of the bankers’ bonus cap “unlike other financial services companies”. Barclays, which has a substantial investment bank and a large New York-based workforce, and HSBC, which employs most of its staff in Asia, gain more from the removal of the cap.

He unveiled his £4bn growth strategy for Lloyds in February, after years of retrenchment under previous chief executive António Horta-Osório. Nunn said that its targets — including adding £1.5bn to revenues by 2026 — were “very achievable”, even with the darkening economic outlook.

While the majority of Lloyds customers were concerned about the cost of living crisis and the challenges it will pose in 2023, Nunn said that only 1 per cent were at present unable to make ends meet.

Lloyds forecasts “a relatively mild recession for most of next year”, he said, with only a 1 per cent fall in gross domestic product, unemployment reaching 5 per cent and interest rates peaking at 4 per cent.

“It is an unusual recession to have employment still strong but have tight labour markets, which means a difficult time for consumers and businesses, but not an extreme recession,” he said.

https://www.ft.com/content/84152703-d305-4b54-8f0b-87b82dc0622f

Threadneedle Street is demanding a strict adoption of the so-called Basel rulebook
By Simon Foy
30 November 2022 • 10:48am
British lenders will be forced to hold back billions more in cash than EU rivals after the Bank of England demanded a strict adoption of new capital requirement rules.

The Bank’s Prudential Regulation Authority (PRA) said it would require banks to adhere to almost all of the so-called Basel 3.1 rules agreed globally, despite Brussels watering down its own regulations.

The so-called Basel rulebook was introduced in the wake of the 2008 financial crisis in a bid to safeguard against future emergencies and dictates bank capital requirements. Banks are required to keep a cash buffer in case they face heavy losses in a downturn.

It comes after The Telegraph revealed in September that the PRA was preparing to insist on a robust implementation of the rulebook in a move likely to trigger friction with ministers and City bosses.

Sam Woods, deputy governor of the Bank and head of the PRA, said: “Alignment with strong international banking standards promotes economic growth by underpinning the competitiveness of the UK as a financial centre, supporting investors’ confidence in the UK banking system and ensuring that banks can finance the economy during downturns.”

The regulator said the implementation of the reforms was consistent with countries such as Australia, Hong Kong, Singapore and Switzerland, adding that it does not expect its proposals to “significantly increase overall capital requirements on average across UK firms”.

The Bank said it would delay the implementation of the rulebook by two years until 2025, while smaller lenders will not be required to apply them.

UK Finance, the main banking lobby group, previously expressed concerns about the design of the latest Basel package.

It also comes after the PRA forced the Government to back down last week over plans to give ministers the power to overrule City regulators in an embarrassing climbdown for Prime Minister Rishi Sunak.

Meanwhile, Andrew Griffith, the City minister, said on Tuesday that the Government will relax bank ring-fencing rules as part of a “Big Bang 2.0” deregulation drive.

Ring-fencing requires banks to separate their retail banking services from their investment and international banking activities and was introduced as a response to the financial crisis.

Mr Griffith told the Financial Times’ banking summit: “We can make the UK a better place to be a bank, to release some of that trapped capital over time around the ring-fence.”

The UK’s biggest lenders will still be required to adhere to the ring fence requirements but several smaller banks, such as Santander UK, Virgin Money and TSB Bank, will likely be exempt.

https://www.telegraph.co.uk/business/2022/11/30/banks-face-forced-hold-back-billions-cash-eu-rivals/

"why not buy Manchester United!"
Because it's Manchester United! lol

lti
"Borrowers could extend the mortgage term or go to interest only if allowed."
Lloyds have announced they are already looking into this to help customers who are struggling with their mortgage payments.

"Lloyds Banking Group, one of the UK’s largest financial services organisations, has announced plans to help struggling customers amid the cost-of-living crisis.

The group’s chief executive officer, Charlie Nunn, stated during the FT Global Banking Summit on Tuesday that the bank is now discussing with regulators the possibility of lengthening the terms of some mortgages, and moving some customers to interest-only loans or lower-cost products.

“We actually just launched some products for those that we thought were most impacted, which were just lower-cost mortgages for customers that we knew were going to struggle,” Nunn was quoted as saying in a Bloomberg report.

The bank executive said they have been working on these plans for three to four months – beginning when inflation in the UK reached a 40-year high - and stepped up its efforts after the mini budget in September."

https://www.mpamag.com/uk/news/general/lloyds-discusses-mortgage-costs-for-struggling-customers/428941

SUFC
It was lower on the last Total Voting Rights RNS on 31st October......the share count has increased by 8,733,921 shares since the 31st October.

chips
Good to see you back posting along with SUFC.........you and SUFC the cheerleaders for the Lloyds BB.

Gate13Boy
"I'm not the only poster who believes Mach and Lokiloo are the same person."
That's for sure. Mach and lokiloo same as Norman Bates and mother!

On the BOE website today.
News release
Today the Prudential Regulation Authority (PRA) has published consultation paper CP16/22 setting out its proposed rules and expectations that cover the parts of the Basel III standards that remain to be implemented in the UK. The PRA refers to them as ‘the Basel 3.1 standards’.

The CP is relevant to all PRA-regulated banks, building societies, investment firms and financial holding companies (‘firms’). The CP also includes revised criteria for determining which firms would be in scope of the future ‘strong and simple’ regime.footnote[1]

The proposals would implement the final package of banking prudential reforms developed by the Basel Committee on Banking Supervision (BCBS) in response to the global financial crisis. It is a comprehensive package of proposed measures that would make significant changes to the way firms calculate risk-weighted assets (RWAs)footnote[2] for the purposes of calculating risk-based capital ratios.footnote[3] The proposed changes are designed to improve the measurement of risk in internal models and standardised approaches and reduce excessive variability in the calculation of risk weights, thereby making firms’ capital ratios more consistent and comparable.

Competitiveness, sustainable growth and international standards
The PRA’s proposals take advantage of the flexibility afforded by the UK’s withdrawal from the EU to propose limited adjustments to the Basel 3.1 standards to reflect the specific characteristics of the UK where those could better capture risk and support the competitiveness and relative standing of the UK.

The PRA’s proposals take advantage of the flexibility afforded by the UK’s withdrawal from the EU to propose limited adjustments to the Basel 3.1 standards to reflect the specific characteristics of the UK where those could better capture risk and support the competitiveness and relative standing of the UK.

Overall, however, the proposed package aligns with the Basel 3.1 standards. The PRA’s analysis suggests that this approach is consistent with the vast majority of major financial jurisdictions, including for example Australia, Canada, Hong Kong, Singapore and Switzerland. The US has not issued its proposals yet. The European Commission has adopted a different approach so far and its proposals include a number of deviations from the Basel 3.1 standards as part of multi-year transitional arrangements which may be extended subject to further reviews.

By aligning with international standards, the proposed package is designed to support sustainable growth in the wider economy, by underpinning confidence in the banking system, reducing the frequency and severity of financial crises, and ensuring that the banking system is in a strong position to finance recovery during economic downturns, supporting households and businesses.

https://www.bankofengland.co.uk/news/2022/november/pra-consults-on-proposals-for-the-implementation-of-the-basel-3-1