Member Info for randommix

Hear, hear Fleccy, well said....

"Keepin it away from the tax man bro..."

Yep, just like herding sheep into the pen....

Hoping that there is sufficient excess capital in February for the same amount to be purchased.

Last year the total distributed was £3.4b. Profits should be higher this year so I would reckon on ~£4b available for buyback and divi

randommix
You obviously did not check the board yesterday! lol

No, I don't visit here every day but I did look back to see if it had been mentioned. I didn't see anything but as my wife says it's a man thing.... he he

flec
''I don't believe the current buyback is having any effect on the share price. ''
Anybody notice that lloy block listed another 585m shares yesterday for the 2021 deferred bonus plan...? The sp will never make headway while that sort of thing is happening and it makes the buyback seem a waste of time....

Number of shares being bought back has dropped to a fraction of what it was a week ago. Are lloy and their brokers holding back expecting the sp to drop lower?

"I forget who on this board predicted some days ago that Russia would invade this morning but well done on the forward look!"

His name is Randommix....

LTI,
I am comparing the alternative use of £1b. It would take 14 years before the additional eps equals the divi. That does not have any bearing on whether lloy is a good or bad investment...

Hi LTI,

I have no problem with profits being reinvested in the business as long as the additional profits generated exceed the company's cost of capital. What I am saying is that on the evidence provided, buying back shares doesn't look attractive to me....

Extract from 2018 published annual accounts, page 49.

"Share buyback

During 2018, the Group completed a £1 billion share buyback programme with an average price paid of 63.4 pence per share. Through a reduction in the weighted average number of ordinary shares in issue, share buybacks have the effect of increasing earnings per share ........ The 2018 share buyback had the effect of increasing the earnings per share by 0.1pps......"

£1b paid as a divi would have been worth 1.4pps.....

Buybacks sound like a really good idea.... not...

''History says buybacks of Lloyds shares has zero effect''

I think you will find that they have the affect of reducing the share count

Yep, it does until lloy issue more bonus shares.....

**The sooner we are self sufficient in energy the better. **

Surprised it was ever in question, it was obvious what would eventually happen. Naieve would be an understatement....

Wouldn't surprise me if Russia were to invade at 7am this coming Thursday....

Sp really, really, really doesn’t want to stay above 50. I think it will take a (confirmed) BoE base rate rise before Christmas to shove it up into the 50-60 range.

I'm more pessimistic, i think it will take a rate rise to put it into the 50 to 52 range. I think it will only break through towards 55 after Q4 results and future strategy are delivered in February....

FT live news

FT latest news updates: Buoyant UK property market lifts estate agents and housebuilders.

But not mortgage providers, they are down...

It's a funny old game....

Headlines in press today.... "Sunak to scrap public pay freeze amid cost of living crisis". "8m to get a wage rise as Rishi makes work pay".

What HMG need to help keep the economy growing is to get more money into people's pockets.

Maybe they will put pressure on lloy to distribute surplus funds into the UK economy by topping up the divi with a special at year end .... Just a thought.

Starmer says landlord tax can pay for social care...... All eyes turn to lloy

https://www.bbc.co.uk/news/uk-politics-58516799

Hi,

' Ahead of the update at half year, dividends may be accrued for via capital, provided this is undertaken on an appropriately prudent basis, but may not be paid.'

Because they use the term 'via capital' I think the PRA is saying they will allow payment of previously with held divis I.e out of previous profits i.e cpital, providing it is easily affordable.....

Contrast that with paying a divi out of profits, meaning out of profits made in this current year...

RM

There's an interesting dynamic between lloy the landlord and lloy the mortgage broker. Lloy the landlord will want to make profits so it needs to attract people to rent. That probably includes offering higher standard accommodation at lower rents than its competitors. But if lloy the landlord makes it too attractive to rent, will people want to take on a mortgage sold by lloy the mortgage broker?

Yes, indeed....