Lloyds (LLOY)

[idpickering]

nb, The Lloyd's CEO is being interviewed on Bloomberg TV (UK) in the next hour.

Ian.

According to the Bloomberg TV presenter, the above chat happens in the next few minutes.

Ian.

[idpickering]

LLOYDS BANKING GROUP COMMENCES SHARE BUYBACK PROGRAMME.

Lloyds Banking Group plc (the "Company") is today launching a share buyback programme to repurchase up to £2 billion of ordinary shares. The Company previously announced its intention to commence the programme on 22 February 2023.

The Company has entered into an agreement with UBS AG, London Branch (the "Broker") to conduct the share buyback programme on its behalf and to make trading decisions under the programme independently of the Company. Under the terms of the programme, the maximum consideration is £2 billion. The programme will commence on 23 February 2023 and will end no later than 29 December 2023. The sole purpose of the programme is to reduce the ordinary share capital of the Company.

https://www.investegate.co.uk/lloyds-ba ... 00088262Q/

Ian.

[Bouleversee]

nb, The Lloyd's CEO is being interviewed on Bloomberg TV (UK) in the next hour.

Ian.

According to the Bloomberg TV presenter, the above chat happens in the next few minutes.

Ian.

I hope they gave him a grilling about his massive bonus and "the bumper payout of up to £3.6bn to shareholders". I have held Lloyds in an ISA for many years and am looking forward to my bumper payout of £35.22 in May to add to the £17.61 received last September and trying not to think about the almost £2.5k loss (over 68%) of capital since purchase. At least I shall be able to buy a few eggs with the dividend.

[idpickering]

nb, The Lloyd's CEO is being interviewed on Bloomberg TV (UK) in the next hour.

Ian.

According to the Bloomberg TV presenter, the above chat happens in the next few minutes.

Ian.

I hope they gave him a grilling about his massive bonus and "the bumper payout of up to £3.6bn to shareholders". I have held Lloyds in an ISA for many years and am looking forward to my bumper payout of £35.22 in May to add to the £17.61 received last September and trying not to think about the almost £2.5k loss (over 68%) of capital since purchase. At least I shall be able to buy a few eggs with the dividend.

I get where you're coming from Lorna. TBH, I didn't watch it myself, but gave the heads up so those that might've liked to watch it knew about it. Did anyone hereabouts see it?

Ian.

[idpickering]

Q1 2023 Interim Management Statement

RESULTS FOR THE THREE MONTHS ED 31 MARCH 2023

"The Group has delivered a solid financial performance in the first quarter of 2023, with strong net income and capital generation, alongside resilient observed asset quality.

The macroeconomic outlook remains uncertain. We know that this is challenging for many people. Our purpose driven strategy, alongside our financial strength, means we can continue to support our customers across the country, helping Britain prosper. We are also making good progress on our ambitious plans to transform the Group. Our experience over the last year reinforces our belief that continued strategic delivery will create a more sustainable business and deliver increased returns for our shareholders in the medium to longer-term."

Charlie Nunn, Group Chief Executive

Robust business performance, supporting continued strong capital generation

• Statutory profit after tax of £1.6 billion (three months to 31 March 2022: £1.1 billion), with higher net income, partly offset by expected higher operating costs. Strong return on tangible equity of 19.1 per cent

• Net income of £4.7 billion, up 15 per cent, reflecting ongoing recovery and the higher rate environment

• Underlying net interest income up 20 per cent, primarily driven by a stronger banking net interest margin of 3.22 per cent in the three months to 31 March 2023, stable on the fourth quarter of 2022, and increased average interest-earning assets

• Other income of £1.3 billion, 6 per cent higher, reflecting continued recovery

• Operating costs of £2.2 billion, up 5 per cent compared to the prior year, based on higher planned strategic investment, cost of new businesses and inflationary effects. Low remediation charge of £19 million

• Underlying profit before impairment up 28 per cent to £2.5 billion, largely driven by strong net income growth

• Asset quality remains resilient and the portfolio is well-positioned in the context of cost of living pressures. Underlying impairment charge of £0.2 billion and asset quality ratio of 22 basis points continue to reflect robust observed credit trends

• Loans and advances to customers at £452.3 billion, down £2.6 billion in the first three months of 2023, including the £2.5 billion legacy mortgage portfolio exit, an additional reduction of £0.6 billion in the open mortgage book and repayments of government-backed lending in Commercial Banking, partly offset by growth in other Retail lending

• Customer deposits of £473.1 billion down £2.2 billion in the first three months of 2023, including a reduction in Retail current account balances of £3.5 billion, partly driven by seasonal customer outflows, including tax payments, higher spend and a more competitive market. This was partly offset by Commercial Banking deposit increases of £2.7 billion, including both targeted growth in Corporate and Institutional Banking and some short term placements

• Loan to deposit ratio of 96 per cent continues to provide robust funding and liquidity, alongside potential for growth

• Strong and stable liquid asset portfolio with all assets hedged for interest rate risk

• Strong capital generation of 52 basis points, based on positive banking performance. Includes the accelerated full year £800 million payment of fixed pension contributions for 2023

• CET1 ratio of 14.1 per cent, after 21 basis points for ordinary dividend accrual and 18 basis points for the Tusker acquisition, remaining ahead of the ongoing target of c.12.5 per cent, plus a management buffer of c.1 per cent

Financial guidance maintained, delivering higher, more sustainable returns

Based on our purpose driven strategy and business model, as well as our current macroeconomic assumptions, for 2023 the Group continues to expect:

• Banking net interest margin to be greater than 305 basis points

• Operating costs to be c.£9.1 billion

• Asset quality ratio to be c.30 basis points

• Return on tangible equity to be c.13 per cent

• Capital generation to be c.175 basis points1

https://www.investegate.co.uk/announcement/7509684

Ian.

[idpickering]

LLOYDS BANKING GROUP COMFORTABLY PASSES BANK OF ENGLAND STRESS TEST.

Lloyds Banking Group (the Group), together with seven other financial institutions in the UK, has been subject to the 2022 annual concurrent scenario stress test (ACS), conducted by the Bank of England (BoE). The 2022 ACS also assessed the ring-fenced subgroups of the participating banks on a standalone basis for the first time.

The Group is pleased to note that it has comfortably passed the stress test and given this strong performance, the Group is not required to take any capital actions. The BoE calculated the Group's transitional CET1 ratio after the application of management actions as 11.6 per cent and its leverage ratio as 4.5 per cent. Despite the severity of the stress test scenario, and without the conversion of the Group's AT1 securities into equity, the Group significantly exceeded the capital and leverage hurdle rates of 6.6 per cent and 3.5 per cent respectively.

The ring-fenced bank (RFB) also passed the stress test, with the BoE calculating the RFB's transitional CET1 ratio after the application of management actions as 12.1 per cent, against the hurdle rate of 7.2 per cent.

The 2022 ACS scenario was designed to test the resilience of the UK banking system to deep, simultaneous recessions in the UK and global economies, with large falls in asset prices and higher global interest rates. The BoE stated at the outset of the exercise that the focus of this hypothetical scenario was to ensure that banks were able to absorb rather than amplify shocks, and continue to lend to UK households and businesses. The scenario was more severe than the last global financial crisis and combined rapidly rising interest rates and unemployment, in conjunction with significant falls in property prices and GDP. In particular, base rates rose to 6 per cent in the first year before gradually reducing to 3.5 per cent in subsequent years; inflation increased to 17 per cent and took five years to recover to the Bank of England's 2 per cent target; GDP fell by 5 per cent in the first year, unemployment peaked at 8.5 per cent in the second year, and UK house and commercial property prices fell 31 per cent and 45 per cent respectively over the first three years. In addition to these economic factors, and in line with previous years, the stress scenario also reflected other risks such as conduct, alongside a traded risk scenario.

https://www.investegate.co.uk/announcem ... ed/7627609

Ian (No holding).

[idpickering]

2023 Half-Year Results.

RESULTS FOR THE HALF-YEAR

"We know that rising interest rates, cost of living pressures and an uncertain economic outlook are proving challenging for many people and businesses. Guided by our purpose of Helping Britain Prosper, we remain fully focused on proactively supporting our customers and helping them navigate the current environment.

The Group delivered a robust financial performance in the first half of 2023 with strong net income and capital generation alongside resilient asset quality.

We continue to make good progress on delivering our strategic initiatives. Combined with our franchise resilience, this better positions us to support our customers, both today and in the future."

Charlie Nunn,

Group Chief Executive

Fully focused on proactively supporting customers

• Proactively contacting customers to offer cost of living support, including more than 200,000 mortgage customers, alongside committing to the Government's Mortgage Charter

• Contact with more than 550,000 business customers to offer guidance on building financial resilience

• Supporting customers to develop financial resilience; contacted over 10 million customers about savings options, with 1.9 million new savings accounts opened in the first half in response to the Group's higher rates and enhanced offering

Robust financial performance and consistent delivery supporting higher interim dividend

• Continuing to deliver on strategic ambitions and well positioned to deliver for all stakeholders

• Statutory profit after tax of £2.9 billion, with net income of £9.2 billion up 11 per cent (stable on the second half of 2022), partly offset by expected higher operating costs and impairment charge. Strong return on tangible equity of 16.6 per cent in the first half of 2023 and 13.6 per cent in the second quarter

• Statutory profit after tax in the second quarter of £1.2 billion, reflecting broadly stable income compared to the first quarter, offset by increases in operating lease depreciation, operating costs and impairment charges

• Underlying net interest income of £7.0 billion, with a net interest margin of 3.18 per cent. Net interest margin of 3.14 per cent in the second quarter, down 8 basis points compared to the first, given expected headwinds from mortgage and deposit pricing. Average interest-earning assets of £453.8 billion, stable compared to the fourth quarter of 2022

• Other income of £2.5 billion, 7 per cent higher, reflecting continued recovery of customer activity and ongoing investment in the business, building confidence in growth potential

• Operating lease depreciation of £356 million, up 67 per cent, given depreciation cost of higher value vehicles, the Tusker acquisition, lower gains on disposal and recent declines in electric vehicle used car prices

• Operating costs of £4.4 billion, up 6 per cent. The Group has maintained its cost discipline in the context of higher planned strategic investment, new business costs and continued inflationary pressure

• Remediation charge of £70 million remains low, largely in relation to pre-existing programmes

• Impairment charge of £0.7 billion and asset quality ratio of 29 basis points reflecting broadly stable credit trends. Asset quality remains resilient and the portfolio is well-positioned in the context of cost of living pressures

• Loans and advances to customers reduced by £4.2 billion (£1.6 billion in the second quarter) to £450.7 billion, impacted by the first quarter £2.5 billion legacy mortgage portfolio exit and net reductions in the open mortgage book

• Customer deposits of £469.8 billion down £5.5 billion (1.2 per cent), including £6.2 billion in Retail current accounts, partly offset by a £3.5 billion increase in Retail savings balances

• Customer deposits in the second quarter benefited from broadly stable Retail balances. Commercial Banking balances were slightly lower including the expected reversal of short term placements, leading to an overall £3.3 billion reduction

• Loan to deposit ratio of 96 per cent; large, high quality liquid asset portfolio with all assets hedged for interest rate risk

• Strong capital generation of 111 basis points includes the full £800 million fixed pension contributions for 2023; 75 basis points after CRD IV model changes and phased unwind of IFRS 9 relief

• Risk-weighted assets increased by £4.4 billion, including £3 billion anticipated impact of CRD IV model updates

• Tangible net assets per share of 45.7 pence, slightly down on the end of 2022 and down 3.9 pence per share in the second quarter, largely due to the impact of rising rates on the cash flow hedge reserve

• Interim ordinary dividend of 0.92 pence per share, up 15 per cent on the prior year and equivalent to £594 million

• CET1 ratio of 14.2 per cent after 44 basis points for ordinary dividend accrual and 21 basis points for the Tusker acquisition. Remains ahead of ongoing target of c.12.5 per cent, plus a management buffer of c.1 per cent

And later;

Dividend and share buyback

The Group has a progressive and sustainable ordinary dividend policy whilst maintaining the flexibility to return surplus capital through buybacks or special dividends.

The Board has announced an interim ordinary dividend of 0.92 pence per share, an increase of 15 per cent, in line with the Board's commitment to capital returns. The Board intends to pay down to its capital target within the course of the current plan, by the end of 2024.

In February this year, the Board approved an ordinary share buyback programme of up to £2 billion to return surplus capital in respect of 2022. This commenced in February 2023 and at 30 June 2023, the programme had completed £1.5 billion of the buyback, with c.3.3 billion ordinary shares purchased.

https://www.investegate.co.uk/announcem ... -2/7654932

Part 2 here; https://www.investegate.co.uk/announcem ... -2/7654983

Ian (No holding).

[daveh]

from Ian's second link:

KEY DATES

Shares quoted ex-dividend for 2023 interim dividend: 3 August 2023

Record date for 2023 interim dividend: 4 August 2023

Final date for joining or leaving the interim 2023 dividend reinvestment plan: 18 August 2023

Interim 2023 dividend paid: 12 September 2023

Q3 2023 Interim Management Statement: 25 October 2023

[idpickering]

from Ian's second link:

KEY DATES

Shares quoted ex-dividend for 2023 interim dividend: 3 August 2023

Record date for 2023 interim dividend: 4 August 2023

Final date for joining or leaving the interim 2023 dividend reinvestment plan: 18 August 2023

Interim 2023 dividend paid: 12 September 2023

Q3 2023 Interim Management Statement: 25 October 2023

Thanks for that. I ran out of time as the dog had her legs crossed.

Ian.

[idpickering]

Completion of £2 billion Share Buyback Programme.

Following the purchase of ordinary shares on 25 August 2023, Lloyds Banking Group plc (the "Company") confirms that the Company's share buyback programme announced on 23 February 2023 was completed in accordance with its terms. The programme was managed by UBS AG, London Branch. In total between 23 February 2023 and 25 August 2023, the Company repurchased 4,386,262,707 ordinary shares for an aggregate consideration of £2.0 billion.

https://www.investegate.co.uk/announcem ... me/7721893

Ian (No holding).

[Gerry557]

So approx 45.59p each

[monabri]

That leaves about 62 billion ....

[torata]

So approx 45.59p each

Doesn't seem to have made a lot of difference to the share price, what with a drop of 19% in the last 6 months.

torata

[Gerry557]

So approx 45.59p each

Doesn't seem to have made a lot of difference to the share price, what with a drop of 19% in the last 6 months.

torata

Maybe it's had a big effect...... The SP might have been even lower

[GoSeigen]

Doesn't seem to have made a lot of difference to the share price, what with a drop of 19% in the last 6 months.

torata

Maybe it's had a big effect...... The SP might have been even lower

If you're bullish LLOY, the buyback was a signal to wait before buying more (this is presumably a decent entry level).

If you're bearish LLOY the buyback was a good chance to sell.


I don't see that the return of capital would make that much difference in itself -- well no more than the effect of the 6%-odd reduction of share count.

GS

[daveh]

Lloyds bank half year results:
https://www.investegate.co.uk/announcem ... ts/7752852

LBCM's purpose is Helping Britain Prosper

By connecting the UK and Lloyds Banking Group with the world



RESULTS FOR THE HALF-YEAR



• Solid financial performance against a backdrop of continued market volatility and inflationary pressures - profit before tax of £213 million (half-year to 30 June 2022 £249 million) and strong CET1 ratio of 14.5 per cent (14.6 per cent at 31 December 2022)

• Continuing to support our customers' needs by providing product choice in an evolving environment and uncertain economic outlook. We are mindful of the impact of higher interest rates and inflation on our customers

• Solid business performance with Markets ending the half-year in the top three for sterling issuance1 and deepening foreign exchange percentage share of wallet; and supporting Lloyds Banking Group (LBG) on signature transactions

• Strategic investment continues with delivery including the further roll out of our new cash management and payments platform in the Crown Dependencies; and continuing to invest in our foreign exchange proposition including capabilities on the FXall and Bloomberg platforms



Lloyds Bank Corporate Markets plc's (LBCM) strategy continues to be to connect the UK and LBG with the world through a first-class banking, financing and risk management proposition, underpinned by excellent customer service. Guided by our purpose of Helping Britain Prosper, we remain fully focused on supporting our customers and helping them navigate the current environment.



Part of LBG, LBCM's purpose driven business model supports its customers (large corporates, financial institutions, commercial customers plus retail customers in the Crown Dependencies) with a range of products including risk management, commercial lending, retail banking services, bonds and structured finance, trade and working capital management and ESG product solutions. All served via its hubs in the UK, Jersey, Guernsey, Isle of Man, New York USA and Frankfurt Germany.

I was thinking "haven't we already had Lloyds bank results?" and then I realised these are for the corporate banking arm.

[idpickering]

Q3 2023 Interim Management Statement.

Continued robust financial performance and consistent delivery

• Statutory profit after tax of £4.3 billion (£1.4 billion in the third quarter) with net income of £13.7 billion up 7 per cent. Strong return on tangible equity of 16.6 per cent, 16.9 per cent in the third quarter

• Underlying net interest income of £10.4 billion up 10 per cent with a net interest margin of 3.15 per cent. Net interest margin of 3.08 per cent in the third quarter, down 6 basis points in the quarter given the expected mortgage and deposit pricing headwinds. Average interest-earning assets of £453.5 billion, stable versus the fourth quarter of 2022

• Underlying other income of £3.8 billion, 8 per cent higher, reflecting continued recovery of customer activity and ongoing investment in the business as we progress against our strategic initiatives

• Operating lease depreciation of £585 million, up on the previous year given depreciation of higher value vehicles, growth partly from the Tusker acquisition, lower gains on disposal and recent declines in used electric car prices

• Operating costs of £6.7 billion, up 5 per cent and in line with expectations. The Group maintains cost discipline in the context of higher planned strategic investment, new business costs and continued inflationary pressures

• Impairment charge of £0.8 billion and asset quality ratio of 25 basis points, reflecting broadly stable credit trends and resilient asset quality. The portfolio remains well-positioned in the context of the economic environment

• Loans and advances to customers reduced £2.8 billion to £452.1 billion, including a £2.5 billion legacy portfolio exit in the first quarter. Balances increased by £1.4 billion in the third quarter with growth across a number of businesses, including in the open mortgage book (£0.4 billion) and the unsecured and Corporate and Institutional Banking portfolios

• Customer deposits of £470.3 billion down £5.0 billion (1.0 per cent), including a £9.4 billion reduction in Retail current accounts, partly offset by a combined £5.2 billion increase in Retail savings and Wealth balances. Deposits increased by £0.5 billion during the third quarter, given growth in Retail savings

• Strong capital generation of 165 basis points; 129 basis points after CRD IV model changes and phased unwind of IFRS 9 relief

• Pensions triennial review substantially agreed with an additional contribution of £250 million to be paid by the end of March 2024, and no further contributions in this triennial period

• Risk-weighted assets of £217.7 billion increased by £6.8 billion, reflecting part of the anticipated impact of CRD IV model updates along with lending and other increases, net of optimisation activity

• Tangible net assets per share of 47.2 pence, slightly up on the end of 2022; up 1.5 pence in the third quarter, given higher profits, the reduction in share count (c.7 per cent year to date following the completion of the £2 billion share buyback) and movements in the cash flow hedge reserve, partly offset by pensions surplus changes and distributions

• CET1 ratio of 14.6 per cent remains ahead of ongoing c.12.5 per cent target, plus management buffer of c.1 per cent

https://www.investegate.co.uk/announcem ... nt/7837177

Ian.

[idpickering]

Publication of Supplementary Prospectus.

The following Supplementary Prospectus has been approved by the Financial Conduct Authority and is available for viewing:

https://www.investegate.co.uk/announcem ... ts/7838796

Ian.

[seagles]

Received the following from Simply Wall Street:-

Lloyds Banking Group
LLOY
Share Price 7 Day 1 Year
0.41 -1.7% -3.8%

Third quarter 2023 earnings: EPS exceeds analyst expectations
Third quarter 2023 results:

EPS: UK£0.02 (up from UK£0.016 in 3Q 2022).
Revenue: UK£4.42b (up 14% from 3Q 2022).
Net income: UK£1.66b (up 20% from 3Q 2022).
Profit margin: 38% (up from 36% in 3Q 2022). The increase in margin was driven by higher revenue.

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.1%.

Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Banks industry in the United Kingdom.

Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth.

[idpickering]

Lloyds Said to Explore Sale of Scottish Widows Bulk Annuities.

Lloyds Banking Group Plc is working with investment banking advisers on the sale of some assets from its pension provider Scottish Widows, according to people familiar with the matter.

The British bank, which is being advised by Fenchurch Advisory Partners and Morgan Stanley, is exploring a sale of a £6 billion ($7.3 billion) portfolio of bulk annuities, the people said.

https://news.bloomberglaw.com/mergers-a ... -annuities

Ian (No holding).