The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Turnpan
A share price level of 50P will be a hard nut to crack in the current economic and political climate, nevertheless Lloyds 2024 forward looking earnings should continue to remain resilient maintaining robust and strong liquidity positions throughout the banking group.
Livestock
Puka set of results by the bank, underlying profits up 25.4%, loan impairments remaining significantly below sector average all achieved on the back of a strong business model and sound management team. Considering Paragon Bank is only a tiny fraction in size compared to Lloyds it's quite remarkable they will return almost £1Bn pounds to shareholders via share buybacks and dividends for the current financial year.
Momentum direction indicators appear to be in positive mode for Lloyds and the market in general.......long may it continue.
Moody's ratings and assessments are probably already baked into current UK banking sector share prices, credit impaired loans within UK banks are rising but manageable at present.
UK banks paying shareholders special dividends in the middle of a national cost of living crisis and high interest rates..... not a wise move by the banks, the media would crucify the sector especially with a General Election imminent in 2024.
Lloyds Banking Group are not alone, share buybacks are definitely back in fashion across the entire index, latest data suggests 37 FTSE100 companies will return approximately £46.6Bn to their shareholders via buybacks this year.
Paves the way for another bumper 2024 share buyback programme ?
More like Tony Blair than Thatcher, labourPart
More like Tony Blair than Thatcher, Labour Party charm offensive now begins in earnest to woo the electorate and the city ahead of next year's general election.
With no further company acquisitions on the horizen, expect Lloyds current buyback and dividend policy to continue into 2024.
December draw £325, giving me a 2023 annualised return of 3.92% on a £50.000 stake with instant access to my cash, still a good investment with no tax liability especially for higher rate taxpayers.
Positive market start to December, eventual protracted sale and cash proceeds from the Telegraph will certainly strengthen cash flow and working capital for the bank.
Shareholders taken to the cleaners, a busted flush of a bank with an unsustainable business model and cost base for the size of it's balance sheet.
Weaker Dollar, signalling to the market, 22 year high American interest rates have now finally peaked.
Hardup
It's very much in Lloyds interest to reach a swift settlement with the Barclays and their financial backers, otherwise it may be a case of jumping through expensive time consuming regulatory hoops for the bank if alternative overseas buyers are eventually successful in clinching a deal to buy the Telegraph.
May all turn out to be pretty academic, expect Labour when in power next year will want to reverse many of Hunt's future spending and taxation plans particularly on any move to slash inheritance tax.
Jcb208
Yes, mortgage and savings rates have now probably peaked and will start to fall soon, NS&I are the latest financial institution to slash savings rates reducing their green savings bond from 5.7% to 3.95%.
Ukraine War Update
Supply of Russian munitions, military equipment and manpower, are the numbers finally beginning to stack up in Putin's favour against Ukraine ?
Solid performer, extremely low current valuation and very attractive dividend yield, along with Aviva and M&G must become takeover targets at some point in the very near future attracting bids particularly from European Asset Management and cash laden American Private Equity Companies.
Markets and investors slowly but surely losing patience with this share, to much idle cash sat on the balance not earning a decent rate of return, Lloyds need to hit the acquisition trail and grow the business once again, huge overseas opportunities out there particularly in international retail banking, capital markets and european personal wealth management businesses.
A fairly punchy Q3 performance by the bank despite numbers coming in below analyst expectations and rising balance sheet costs. On the positive side an extra $3Bn dollars added to the share buy pot taking the total share buyback to $7Bn dollars for 2023.
Asset quality and impairment charges holding up well despite weak economic growth, full -year NIM guidance hopefully remains on track for Q4 and 2023 year -end financial reporting.