Member Info for Jaymogs

Don’t forget the cost of admin in relation to the claims. Lloyds had to hire an army to process the poi claims, will be a significant cost no doubt

Looks like it’s this

https://www.ft.com/content/b7638550-e1a8-4423-9d00-1656de94a3f2

Barclays down over 4% in the US, what’s happened?

They need to bring average earnings down too based on that logic which is another of the 3 components. Yesterday’s number of 8.2% is not expected to move much in September which is when the triple lock number is taken

Were there no buybacks today?

Here’s the source for the £200m figure per 0.25% (again, old article)

https://www.fool.co.uk/2023/01/08/why-interest-rate-sensitivity-makes-lloyds-shares-a-buy-for-2023/

Lots of concern regarding mortgage affordability and bad debt provisions but worth remembering Lloyds makes approximately £200mn from the BOE for every 0.25% hike in interest rates. Old article link below but relevant now with rates likely to spike further in the coming months

https://www.reuters.com/world/uk/boe-wont-accept-interference-over-interest-payments-banks-pill-2022-11-24/

Think economists are expecting -18.5% GDP decline on average for April. Any number significantly better / worse will affect the price no doubt

Well there’s £25m risk free profit within the first week of them being launched. That would have added 33% to the Q1 pre-tax profit

Interest charged will be at 2.5% and the Gov’t will pay the first 12 months worth

Indeed, and as these loans are 100% underwiritten by the Gov’t there’s a big chunk of lending (£1bn) that shouldn’t have to be provisioned for or eventually turn into a bad debt?

PPI provisioning for values similar to today’s £1.4b have been common across the last few years but the share price was stubbornly around 60p. Reading the blurb, Lloyds still has £1b provision left in the pot from PPI which you would have hoped the majority of claims would have been settled now