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About time...

When do you see the 57-60 range?, tough to say I know with all goings on, loose prediction all things being equal?

SUFC & LTI<

If LBG share price hit 55p-60p with a 5% yield, would you honestly sell??

What's everyone's feeling on whether the banks will be taxed anymore??

The interest paid to banks from the BoE is on top of what the trading profits are... This is an addition!!!, as the BoE rates have been ZERO until recently, so if it's tiered it's still a positive to Net profits, if it its reduced to Zero percent then nothing lost as the banks have been paid nothing by the BoE for last decade or so.. DYOR DOH

Surprise Suprise Buybacks in favour!!

£10M Stamp Duty!!!!!!!!!!!!! No Stamp Duty on dividends!!!

UK banks set for bumper profits despite mortgage market freeze
A ‘cha-ching moment’ expected in third-quarter results as City grapples with financial crisis

The UK’s four largest banks held close to £900bn of reserves with the Bank of England at the end of the first half of this year © Chris Ratcliffe/Bloomberg
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Siddharth Venkataramakrishnan and Emma Dunkley in London 5 HOURS AGO
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The UK’s biggest banks are set to make bumper profits from rocketing interest rates even as they pull mortgage products from the shelves and leave savers with meagre returns on their deposits.

The financial turmoil sparked by Chancellor Kwasi Kwarteng’s “mini” Budget has seen markets betting interest rates in the UK could peak at 5.8 per cent next spring, creating a bonanza for high street lenders who will rake in returns for holding nearly £900bn of deposits at the central bank.

“There’ll be an embarrassment of riches — bank margins will look very wide in the third quarter,” said one senior banker, describing it as “a cha-ching moment”.

The Bank of England has already pushed interest rates up to 2.25 per cent from a record low 0.1 per cent during the pandemic last year, as it attempts to fight inflation.

The UK’s four largest banks — Barclays, HSBC, Lloyds and NatWest — have roughly doubled their reserves over the past three years and held nearly £900bn in the central bank at the end of the first half of 2022, yielding almost £20bn at the current base rate.

Each additional 10 basis point rise would add close to £1bn in net interest income a year.

The boost to banks’ bottom lines came as more than 1,600 mortgage products were withdrawn by lenders over the course of the week following market upheaval after Kwarteng’s fiscal event, prompting the Financial Conduct Authority to contact banks as would-be borrowers were left in the lurch.

High street lenders have also failed to pass on their gains from rising base rates to savers, creating what one senior banker called a “two-tier market” as smaller competitors offered more competitively priced products.

Barclays pays 0.25 per cent on its everyday easy access savings account from £50,000 to £1mn, while NatWest’s instant saver offers 0.4 per cent. By contrast, Yorkshire Building Society, which is on the best buy table of highest rates, pays 2 per cent. Chase UK, JPMorgan’s digital bank, offers 1.5 per cent on savings of up to £250,000.

For European

Agreed Suff and packed with cash, anyone know how much the 14% capital buffer equates to in £'ss??

It might not be the Americans that buy LBG, it is clearly cheap, and the UK is up for sale again again again... Defo a potential target...

Maybe a cheeky 60p for xmas??

50p would be good for me!!

My spider senses tell me more of a rise this week SUFF!!

https://event.webcasts.com/viewer/event.jsp?ei=1566206&tp_key=753ddfe515

(Alliance News) - Lloyds Banking Group PLC on Monday said it is launching a tender offer worth GBP1.06 billion of sterling-denominated notes.

Lloyds is offering to purchase for cash any and all the outstanding 7.625% fixed rate tier one subordinated convertible securities due 2023.

The offer is part of Lloyd's continuous review and management of outstanding capital base.

For each GBP1,000 of the securities tendered, holders of the securities will be eligible to receive GBP1,020. Holders will also receive accrued and unpaid interest on the securities from the last interest payment date up to the settlement date.

The offer has commenced with immediate effect and will end on October 7. Settlement date is expected to be October 13.

Shares in Lloyds closed 2.1% higher at 82.92 pence each in London on Monday.

By Chris Dorrell; chrisdorrell@alliancenews.com

Totally agree Sufc, i wish the share price would increase to 50+ too, its very frustrating to say the least..

Good FT article LTI thanks for that, agreed be better for us.. you never know..

I don't get it either, keep saying to myself hang in there, grrrrrrrr

I think the article is stating that's the return the banks get on the capital "they mandatorily" have to keep on the books as a buffer!!

LTI ??
Banks earn billions by failing to pass on benefits of rising UK interest rates
Savers lose out as big five hold cash at central banks
Barclays, HSBC, Lloyds, NatWest and Santander held as much as £673.5 billion in cash and balances at central banks, analysis shows

George Nixon, Money Reporter | Imogen Tew, Senior Money Reporter
Friday August 19 2022, 3.30pm, The Times
The biggest high street banks have made billions of pounds through the Bank of England’s latest rate rise but have not passed on the benefits to their savers, The Times can reveal.

Analysis of the latest results of Barclays, HSBC, Lloyds, NatWest and Santander shows they held as much as £673.5 billion in cash and balances at central banks such as the Bank of England at the end of June.
Analysts said they expected most of this to be held at the Bank of England, where it earns interest at the present base rate, which is at a 14-year high of 1.75 per cent.
It is in effect their own piggy bank where they can put money they need to hold for capital purposes or that is not being lent as mortgages.
If the £673.5 billion in cash was held at the Bank of England for a year at the present base rate, it would earn the five biggest banks £11.78 billion in interest. They are not doing anything to earn this; it is simply paid on money they deposit at the Bank of England — something everyday savers cannot do.
When the base rate was at its all-time low of 0.1 per cent as recently as last December, they would earn just £674 million.
In their most recent financial results released over the past month, the banks have all reported higher profits and increased margins between what they earn in interest and what they pay, because of rising interest rates.

Mel Stride has called for an investigation
Their savers are not seeing the benefit, even though higher rates are supposed to be passed on to them. Mel Stride, chairman of the Treasury select committee, suggested this week that MPs could investigate whether banks were treating savers unfairly. “With inflation eating away at people’s money, it’s all the more important that people get the best return possible on their savings,” he told The Times. “It’s therefore disappointing that some banks don’t appear to be rising to this challenge.”

The average easy-access account across the five banks pays only 0.14 per cent, according to the analyst Savings Champion, compared with the 1.9 per cent top rate on the market and consumer price inflation of 10.1 per cent.
Barclays has yet to increase its easy-access rate at all from 0.01 per cent despite six successive base rate rises. It said competition in the mortgage market had squeezed what it earned on new mortgages.

At the same t

Anyone know or can find out how much of LBG capital is held at the BOE currently receiving 1.75% interest??