The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
MANY THANKS!
Lloyds essentially removed the idea of meritocracy perhaps 5-7 years ago when I ran a team of 100ish people there.
The metrics was never focused on client focus / quality(or shareholders) only lending and increasingly woke metrics. They ran big spreadsheets with race/gender metrics and as a manager you had to deliver a certain composition. They also ran multiple "LGBTQ" initiatives so suddenly employees started focusing on that as senior managers were always present. It was perceived to be a better play in your career to be active in those groups rather than excel in your job. It was an entirely internally focused culture and I am not surprised at all about the Halifax debacle. Unfortunately I sit on a decent amount of shares due to deferred compensation and I am sceptical if the shares will every recover from a decade of poor management. When a new CEO arrives and the first thing you see of him is a story about his cycling you know something is wrong...
Any perspectives on today's drop? Volume was very small. Cheeers,
I invest in AEWU. Their quarterly investors calls are great providing transparency. They appear systematic and professional.
Many thanks damofarl !
I have not seen the announcement either. Should have been June 6?
Good idea, I own several funds like this and have the same concerns. Is it possible to ask the managers to publish a one-off risk assessment with description of their potential hedges/decision? I don't mind risk obviously but as an ex FX option trader I always went home with a "war risk report" which 'smiled" at me at extreme volatility events.
Is has yet to be seen how "smart" Charlie is. So far he has not impressed with his decisions. Even if he were to see the light, it will take years to undo the damage AHO did to the company in his last five years. He hired a head of the Commercial Bank with no capital markets or Global Market experience. He hired a head of Markets (a friend apparently) with no experience from FX, interest, commodities or derivatives. He hired a head of Cash Management with no cash management experience and worst of all he hired a Treasurer with no experience at all (another friend), so bad the regulator would not approve him. These people have further eroded Lloyds deteriorating staff competence in combination with a weird "woke" culture with metrics to ensure that meritocracy is virtually abolished. The Private Bank has been hollowed out for a decade reducing products and services even preventing expat clients to buy new products, even a term deposit. The digital strategy is so centralized that instead of empowering businesses they prevent seamless services across businesses. The decision to move into the landlord business at an all time high real estate market in combination with rising interest rates and risk for recession is further concentrating risk, a big gamble if you wish. The only long term value with LBG is their incredible cash generating balance sheet with old style retail banking and credit cards. For value to be realised they really should get out of anything else. It is beyond repair just like many such banks across Europe. Once Charlie starts to sell off businesses with small market share and high cost of capital and start rebuilding human capital there is time to be optimistic. Besides the SP is much more exposed to macro events than anything Charlie and his angels can do. Sorry but it's just my view...
Good to see they have actively capped the interest rate on the new facility! The rate they are paying may look extremely cheap in due course.
The pound is always like one step forward two backwards. The 1 month 25 delta risk reversals in CABLE mostly trades with a premium for the STG Puts as that is usually where the risk is. But since the feds were more dovish than expected, in theory that should have had a somewhat neutral effect on the rate. Similar scenario with LBG... It's a though market right now...
Thanks for that Trotsky!
I hope she shows up at any of the other REIT's I own like RGL and RLE...
Morning, any thoughts on the resignation of Alex? I am a relatively new investor but was impressed with her presentations on the quarterly briefings and of course I have a lot of confidence in the company itself.
Plato, you have a good vision!
Despite Nunn's statement Pretax Profits were down 26% and the Core Capital Buffer was down quite a lot...
This in combination with uncertain economic outlook, perhaps a recession, will make both buy-backs and dividend growth uncertain. The 3Bio "initiatives" over three years is largely cost cuttings as always so any revenue growth will have to come from increases in the net interest margin (which may happen short to medium term). The only top line revenue growth initiative is the venture into land lording which increases risks and is very expensive to establish. This may not be a smart thing to do if recession hits and people start defaulting on private loans and mortgages... As always with Lloyds their statements counter the pesky reality.
To me this is a long term holding share. We like the sector, the management and the yield. When I built my portfolio of. UK REITS last year I found liquidity missing, which is obviously a risk, but I am not trying to be clever with market timing, at least not with these type of shares. Make a decision, buy to hold, sit back and monitor is my strategy.
https://www.finews.com/news/english-news/51087-claws-out-for-horta-osorio-s-lloyds-bonus
Swiss Bank Vontobel today affirmed LBG as a buy with a target of 68P.
Good! I worked there as an MD for 5 years while he was the CEO. His leadership style was from a hundred years ago. Never to be seen in the businesses. No interest in people, clients or actual product innovation. Arrogant and feared. Totally above everybody with his multiple BMW 7series (could not even drive Jaguar, a big client) outside the head office with bodyguards while the staff had bad office conditions across the UK. Recently, at Credit Suisse, he "upped" his game, rolling over the CEO, using the company jet to fluff around around world ignoring Swiss covid rules. They spit him out, rightly. In 30 years of working on Wall Street and in the City of London I have never seen such as bad pathetic leader. Plus of course the LBG share price was a disaster.... Sorry, I am done now...
As critical as I am of LBG my answer has to be NO at these levels. It is not a waste of time, their balance sheet is incredible (they just need to get rid of the ancillary's hobbies...). But as we all know the major factor is the overall markets...
THANKS LIVESTOCK!