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UK Banking Sector are well financially provisioned to ride out and survive the full impact of the forthcoming economic crisis, however at huge cost to their balance sheets . Share prices will probably test, and hit lows not seen since the 2008 financial crisis.

Savers might as well just invest their cash into Premium Bonds or even purchasing Lottery Tickets than the absolute paltry interest rates offered by the UKs Banks and Building Societies.

Why should there be a takeover bid for Lloyds when a foreign investor can purchase RBS at a knock down price from the Government ?.

How market perception and valuations of companies can change over the years. Prior to the financial crash of 2008 Royal Bank of Scotland was briefly regarded as the largest bank in the world. Today in terms of market capitalization it is worth slightly less than loss making grocery doorstep delivery company OCADO.

Positive move by Lloyds, buying back and restructuring its own interest bearing debt, and giving a much needed boost to the bank balance sheet.

Asperger1, Far to early to assume or analyse any financial data from Q1 earnings. Lloyds main concern is now to protect balance sheet, prioratise and finance ongoing current financial year capital requirements, and keep a lid on the expected surge in impairment charges the bank will incur over the coming months.

Reinstatement of dividend payments can only begin once again when the uncertainty is removed and the UK economy is firmly back on the road to recovery .

independant , The full economic impact and knock - on effects to the UK economy and Lloyds will not become apparent for many months . I am still confident dividends can be resumed at some point during 2021 although probably rebased at a lower payout level than in previous years.

jl5006, Rail and Bus travel passenger numbers are currently down 80% due to the coronavirus virus. If rail nationalisation is to be put back onto the government agenda, we must never revisit the days of Union power and disruption experienced under the pre - privatisation era of British Rail. Government legislation together with constructive dialogue and agreement with the rail unions must be written on to the government statue book forbidding any type of unjust industrial action or strikes to be carried out by the rail unions.

Theosus, Agree 20 out of the UKs 27 rail franchises are now run by foreign state -owned rail companies mainly from France, Holland and Germany.

Wids, A Nationalised rail network can be succesfully run, a good example is the East Coast Mainline, after failed multiple attempts by rail companies Stagecoach / Virgin Trains and National Express it is now back in public ownership and also making making a profit.

Richard, Agree the Lloyds BOD do have a commitment and duty towards its shareholders. Their first and most important obligation to their shareholders and customers is to protect the bank balance sheet in these uncertain and troubled times.

I am quite confident at a future date any excess cash left sat on the balance sheet after this crisis has passed and the UK economy is back on a firm footing, it will be rightly returned back to shareholders in dividends.

The government must now take the rail and bus sector back into public ownership immediately. Latest financial data suggests the national transport network will require up to £7 billion in government aid just to maintain critical services over the next 12 months due to a sharp drop in passenger numbers due to the coronavirus epidemic.

This situation is now completely unacceptable you cannot expect the UK taxpayer to keep subsidising the rail franchising system and let rail companies keep profits and at the same time letting these companies walk away from their contractual fianancial commitments when losses occur on their operational franchise systems when it suits them to do so.

kassam83, It is essential, and in their own financial interest's for banks and the government to play their part in providing money and keep lending to businesse's and helping the wider UK economy to stay afloat in these unprecedented times we now find ourselves are all now living in .

Oxo42 , Lloyds had no choice or say in the matter, The decision to cancel the current financial dividend was a mandatory directive by the BoE and PRA who made it quite clear to Lloyds and the rest of the UK banking sector they would be no bank bailouts or support for the sector this time round, if they paid out current financial year dividends to shareholders.

livestock, Impossible to acurately predict, banks may as well just look into a crystal ball than try and assess the true impact and cost of the coronavirus outbreak will have on the UK economy and their current balance sheets and business models due to increased leverage and weaker earnings for the 2020 -2021 financial year and possibly beyond into subsequent financial years.

There are high expectations dividends will be resumed in the 2021 -2022 financial year, although rebased at a lower level than in previous payout years.

Unlikely to see any " Boris Bounce " for the UK economy over the coming weeks. Phasing out the job furlough scheme for employee's and removal of government support for companies and small businesses could trigger a large scale wave of failures and insolvency's. For many, pre - coronvirus trade and business will have permanently disappeared, for others strict social distancing measures will simply mean their on -going business operations are no longer economically viable or profitable to carry on.

Very little profit in it for banks lots of SMEs who dont need the cash will take advantage of the government 2.5 % interest on offer and not payable for the first twelve months who will benefit further down the line by avoiding having to pay ordinary commercial rates of interest on loans offered by the banks at a future date.

23awel, investors will have to wait and see if dividends are reinstated in Q1 2021, the knock on effects to the bank balance sheet and the total bill for the UK economy will not become apparent for many months after the CV-19 crisis has ended.
Attention will then switch to the EU trade negotiations and could well end up in the UK economy and the bank taking a further financial hit if Brexit trade negotiations fail to reach an agreemment.

Investors should not fixate and look back on the halcyon days of double digit earnings growth for UK banking sector and year on year rising share prices, those days are now well and truly over. Banks now operate in a new environment of tighter regulation, ultra low interest rates, stiff banking competition and ever decreasing net interest margins.