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Well that's another £1bn of income for 2023 ....lovely jubbly

Also worth remembering that with a windfall tax being discussed, it makes good sense to ratchet up the provisions and not announce headline grabbing numbers.

The government can hardly justify a windfall tax when the banks already pay the bank levy on top of corporation tax when profits are lower than last year.

This is what you need to focus on and remember last years figure were artificially inflated by the writing back in of much if the covid provisions.

• Underlying profit before impairment up 29 per cent to £6.5 billion in the period (with £2.4 billion in the third quarter), as a result of robust net income growth

Extrapolate this over a year and factor in base rates of 4 % and you should get the picture as to what 2023 is going to look like for Lloyds….. income is going to grow inexorably higher and we will see record profits.

Look at slide 7 where Barclays show the 3 year impact on income of a 25bp rise in interest rates. It’s £500m! It’s a,so interesting to see that they are relatively relaxed re impairments.

Read that across to Lloyds and the considerably larger balance sheet which includes over £300bn of mortgages and you get the picture.

Given the base rises since half year of over 2% and at least another 1% to come by the year end, we are looking at 12 x £500m over three years equating to at least an extra £2bn a year over the next 3 years.

After tomorrow Lloyds are going to look very cheap indeed.

The joys of spending other people’s money Covgaz.

As Margaret Thatcher once said, the problem with Socialism is that eventually you run out of other peoples money.

Got to be looking good for another £1bn buy back on the back of the share price performance which has now lost its support with the buy back completed.

We would now be buying back at a massive 30% below book if it was to restart.

In 35 years pf investing I have never seen Banks trade at this kind of discount. Either the Market has got it horribly wrong or there ie s impending disaster afoot.

There are some chunky blocks of stock going through this morning, many showing as sells when they were more likely to be buys.

Trades of this amount have got to suggest institutional interest and perhaps knowledge that something is afoot.

That 15p just needs to break and we should be off again.

And apologise when you are factually incorrect.

Doesn't matter when the article is from or is there a cut off for referencing material that I wasn't aware of on the board? The fact of the matter is that Marisol stated that the UK government had never provided finance yet you will find a number of instances where it has through EF.

Regarding whether the Falklands is part of the UK, Its an Overseas Territory however the fact is that Rockhopper is a UK company so would qualify.

As for Oil & Gas projects, the wording is 'in most cases' and given today's announcement and change of government tact, I would be relatively confident that they may well be able to get support.

And the irrefutable evidence ....https://www.gtreview.com/news/europe/falklands-oil-and-gas-project-in-line-for-eca-funding/

Oh and the idiot who ticked him up .....

Really? Not heard of export finance?

https://www.great.gov.uk/get-finance/

If you read back on the RKH and Premier announcements you will be aware that an application for support went in prior to Premier hitting the buffers when the oil price fell.

Do keep up Mirasol you plonker...

If this goes (and I expect to to) it opens the way to the previous resistance level of 20p.

In the current environment and given Sealion is appraised and ready to go, I expect some sort of government funding support to be announced sooner rather than later.

Sam mentioned that he was having conversations according to another poster.

Looks like a given to me.

Much

https://www.investorschronicle.co.uk/ideas/2022/10/06/lloyds-big-is-beautiful/

Great spot Sam.

I would urge anyone invested or looking to invest to read this article as it comes hot on the tail of my posting yesterday about margins and interest rates.

All looks very bullish.

LTI with respect I don't need a lesson on PEs, market caps and share buy backs. I've traded since 1987 and Big Bang etc

I know very well how each is calculated and that a reduced number of shares drive increased EPS etc.

My point is that it his starting to look like the market has got Lloyds unbelievablely wrong. Most people invested have only known Banking since 2007 and the onset of minimal interest rates.

I think the market is missing the extraordinary upside potential re earnings on the mortgage book and a big re-rating is going to occur once it dawns.

Any company that is effectively being priced at 3 years earnings is either facing impending disaster or the market has got it horribly wrong.

Ok so where I am coming from is that with a Market cap of £30bn and profits of say £7.5bn we would be on a PE of 4 which in itself is going to drop if the share buy backs continue.

This is against a FTSE average PE of 14.

In other words Lloyds are going to look ridiculously cheap by any measure. And if as anticipated interest rates rise further we're going to see a significant rise in income.

To bring it to life, a 1% increase in mortgage interest rates delivers an extra £3bn per annum on a £312bn mortgage book!

Not sure I follow LTI.

What has surge in interest related income from a £312bn mortgage book got to do with the Market Cap of the Bank? After ask the MC is simply the current share price x the number of shares in issue and is ridiculously low by any measure?

Would someone care to explain why with the Bank awash with liquidity and NIBCA free money and mortgage rates rising, how even a 2% increase in rates isn't going to ultimately drive in excess of £5bn of additional income over the next few years?

I get the bad debts recession agreement eating into profits but seriously?

I can't believe that Lloyds won't be making £10bn a year by 2024.