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Dod101 wrote:Presumably at least partly as a result of the constraint on dividends the banks all seem to be awash with cash at the moment.
Dod
We are Helping Britain Recover with strong progress made under Strategic Review 2021
• Strong performance against Helping Britain Recover commitments, including lending more than £16 billion to over 80,000 first-time homebuyers (target: £10 billion), supporting over 93,000 start-ups and small businesses1 with online support, business advice and business banking accounts (target: 75,000) and expanding the funding available under the Group's discounted green finance initiatives from £3 billion to £5 billion
2021 Results
• Significant progress against our customer focused commitments, including maintaining the Group's record all-channel net promoter score of 69 and increasing net new open book Assets under Administration (AuA) in Insurance and Wealth by over £7 billion
• Continuing to enhance the Group's digital capabilities, with mobile app releases nearly double that of prior year and a three-fold increase in corporate clients onboarded to the Group's new cash management and payments platform
Solid financial performance with continued business momentum
• Statutory profit before tax of £6.9 billion and statutory profit after tax of £5.9 billion, benefitting from higher income and a net impairment credit. Tangible net asset value per share of 57.5 pence, up 5.2 pence per share
• Solid net income of £15.8 billion, up 9 per cent, with underlying net interest income of £11.2 billion, up 4 per cent, underlying other income of £5.1 billion, up 12 per cent and a reduction in operating lease depreciation. Underlying net interest income benefitted from increased average interest-earning banking assets, up 2 per cent and a strengthened banking net interest margin of 2.54 per cent
• Sustained cost discipline with operating costs of £7.6 billion, up 1 per cent compared to the prior year, including the impact of rebuilding variable pay. Remediation charges of £1,300 million, with £775 million in the fourth quarter, including £600 million in the quarter for HBOS Reading
• Asset quality remains strong. Net underlying impairment credit of £1.2 billion, including a net credit of £467 million in the fourth quarter, benefitting from improvements to the macroeconomic outlook for the UK, combined with robust observed credit performance
Balance sheet and capital strength further enhanced
• Loans and advances to customers at £448.6 billion, up £8.4 billion versus prior year, driven by strong growth in the open mortgage book (up £16.0 billion in the year to £293.3 billion)
• Customer deposits up £25.6 billion to £476.3 billion, with Retail current accounts up 14 per cent to £111.5 billion
• Loan to deposit ratio of 94 per cent, providing robust funding and liquidity; significant potential to lend into recovery
• Strong pro forma capital build of 210 basis points, with 51 basis points in the fourth quarter. CET1 ratio of 16.3 per cent (pro forma2), remaining ahead of the ongoing target of c.12.5 per cent, plus a management buffer of c.1 per cent
• Board has recommended a final ordinary dividend of 1.33 pence per share, resulting in a total ordinary dividend for 2021 of 2.00 pence per share, in line with the Group's progressive and sustainable ordinary dividend policy. The Board has also announced its intention to implement an ordinary share buyback programme of up to £2.0 billion, given the strong capital position of the Group
And later;
The Board has recommended a final ordinary dividend, which is subject to approval by the shareholders at the Annual General Meeting on 12 May 2022, of 1.33 pence per share (2020: 0.57 pence per share) totalling £947 million. These condensed consolidated financial statements do not reflect the recommended dividend.
Shareholders who have already joined the dividend reinvestment plan will automatically receive shares instead of the cash dividend. Key dates for the payment of the recommended dividend are:
Shares quoted ex-dividend
7 April 2022
Record date
8 April 2022
Final date for joining or leaving the dividend reinvestment plan
27 April 2022
Dividend paid
19 May 2022
spiderbill wrote:Obviously a very difficult day to judge, but 11.5% down - compared to HSBC's 5.6% down - suggests that the market didn't think much of that update. As ever with Llyods, just when you think they're getting out of the mire they find a reason to fall back into it.
A few days ago pundits were suggesting they could double this year! Oink Oink Flap.
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 24 February 2022.
The Company has entered into an agreement with Morgan Stanley & Co. International plc (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 25 February 2022 and will end no later than 31 December 2022. The sole purpose of the programme is to reduce the ordinary share capital of the Company.
The Broker will purchase the Company's ordinary shares as principal and sell them on to the Company in accordance with the terms of their engagement. The Company intends to cancel the shares it purchases through the programme.
Any purchases of ordinary shares by the Company in relation to this announcement will be made in accordance with certain pre-set parameters set out in the terms of the Broker's engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company's annual general meeting held on 20 May 2021 (which permits the Company to purchase no more than 7,088,402,568 of the Company's ordinary shares), the EU Market Abuse Regulation (596/2014), the Commission Delegated Regulation (2016/1052), in each case as such legislation forms part of retained EU law (as defined in the EU (Withdrawal) Act 2018), and Chapter 12 of the Financial Conduct Authority's Listing Rules. The buyback is subject to the continuing approval of the Prudential Regulatory Authority.
For the avoidance of doubt, no repurchases will be made in the United States or in respect of the Company's American Depositary Receipts.
Solid financial performance
• Statutory profit after tax of £1.2 billion (first quarter of 2021: £1.4 billion), reflecting higher net income and a limited underlying impairment charge versus a net credit in the prior year. Tangible net assets per share of 56.5 pence
• Strong revenue growth supported by continued recovery in customer activity and interest rate changes. Net income of £4.1 billion, up 12 per cent, with higher net interest and other income, alongside low operating lease depreciation
• Underlying net interest income benefitted from increased average interest-earning banking assets and deposit growth in recent quarters including the first quarter of 2022 and a stronger banking net interest margin of 2.68 per cent
• Operating costs on the new reporting basis1 of £2.1 billion, up 3 per cent compared to the first quarter of 2021, reflecting stable business-as-usual costs and planned incremental strategic investment
• Underlying profit before impairment up 26 per cent to £2.0 billion in the quarter, driven by strong net income growth
• Asset quality remains strong. Underlying impairment of £0.2 billion, reflecting a low incurred charge and limited impact from revised economic outlook, including higher inflation offset by stronger house prices and unemployment
Continued franchise growth and capital strength further enhanced
• Loans and advances to customers at £451.8 billion, up £3.2 billion in the quarter, including continued growth in the open mortgage book (up £1.7 billion in the quarter to £295.0 billion)
• Customer deposits up £4.8 billion to £481.1 billion, with continued inflows to the Group's trusted brands. Loan to deposit ratio of 94 per cent, continues to provide robust funding and liquidity
• Strong capital build2 of 50 basis points has allowed for significant accelerated pension contributions, comprising the full 2022 fixed contributions, as well as around half of the variable element. The Group's CET1 ratio was 14.2 per cent
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 0.80 pence per share, an increase of c.20 per cent, in line with the Board's commitment to capital returns. Going forward, the Board intends to maintain its progressive and sustainable ordinary dividend policy and due consideration will be given to excess capital returns at the end of the year as is customary. The Board intends to pay down to its capital target within the course of the current plan, by 2024.
In February this year, the Board decided to return surplus capital through a share buyback programme of up to £2 billion. This commenced in February 2022 and at 30 June 2022, the programme had completed c.£1.3 billion of the 2022 buyback, with c.2.8 billion shares purchased.
Following the purchase of ordinary shares on 11 October 2022, Lloyds Banking Group plc (the "Company") announces that the Company's share buyback programme announced on 25 February 2022 was completed in accordance with its terms. The programme was managed by Morgan Stanley & Co. International plc. In aggregate between 25 February 2022 and 11 October 2022, the Company repurchased 4,528,731,591 ordinary shares for an aggregate consideration of £2.0 billion.
GrahamPlatt wrote:Seems they overpaid by ~10% then.
GrahamPlatt wrote:Seems they overpaid by ~10% then.
“In February we announced an ambitious new strategy. While the operating environment has changed significantly since
then, our customer focus remains unchanged. We continue to execute against our strategic goals, based on our
objectives of transforming the business, while generating a stronger growth trajectory and enabling the Group to deliver
higher, more sustainable returns.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
The current environment is concerning for many people and we are committed to maintaining support for our customers.
The Group’s resilient business model and prudent approach to risk position the Group well to face the current
macroeconomic uncertainties while generating enhanced returns for our shareholders.”
Charlie Nunn, Group Chief Executive
Robust financial results with resilient credit performance and continued business momentum
• Maintaining support for customers and progressing strategic priorities with significant strategic investment
• Supporting the transition to a low carbon economy; announced new sector-based 2030 emissions reduction targets
and a new net zero ambition for our supply chain in our Net Zero Activity Update1
• Statutory profit after tax of £4.0 billion (nine months to 30 September 2021: £5.5 billion), with higher net income more
than offset by impairment charges as a result of the revised economic outlook (versus a significant write-back in 2021)
• Robust revenue growth supported by continued recovery in customer activity and UK Bank Rate changes. Net income
of £13.0 billion, up 12 per cent; higher net interest and other income and continued low operating lease depreciation
• Underlying net interest income up 15 per cent, significantly driven by a stronger banking net interest margin of 2.84 per
cent year to date (2.98 per cent in the third quarter)
• Operating costs of £6.4 billion, up 6 per cent compared to the first nine months of 2021, reflecting stable business-asusual costs alongside higher planned strategic investment and new businesses
• Underlying profit before impairment up 29 per cent to £6.5 billion in the period (with £2.4 billion in the third quarter), as
a result of robust net income growth
• Observed asset quality remains strong and the portfolio is well-positioned in the context of cost of living pressures.
Underlying impairment of £1.0 billion (of which £0.7 billion was recognised in the third quarter) reflects a resilient
observed credit performance, but impacted by the weakening economic outlook and associated scenarios in the third
quarter, partially offset by COVID-19 releases
idpickering wrote:Q3 2022 Interim Management Statement.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
88V8 wrote:idpickering wrote:Q3 2022 Interim Management Statement.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
But the SP continues to malinger, the yield is piffling, and the govt, egged on by the 'Bolshevik Broadcasting Corp', seems likely to steal more of shareholders' proceeds in tax.
I know some on here are long UK banks, well all I can foresee is they'll wait a long time.
V8
88V8 wrote:idpickering wrote:Q3 2022 Interim Management Statement.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
But the SP continues to malinger, the yield is piffling, and the govt, egged on by the 'Bolshevik Broadcasting Corp', seems likely to steal more of shareholders' proceeds in tax.
I know some on here are long UK banks, well all I can foresee is they'll wait a long time.
V8
daveh wrote:88V8 wrote:idpickering wrote:Q3 2022 Interim Management Statement.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
But the SP continues to malinger, the yield is piffling, and the govt, egged on by the 'Bolshevik Broadcasting Corp', seems likely to steal more of shareholders' proceeds in tax.
I know some on here are long UK banks, well all I can foresee is they'll wait a long time.
V8
Yes the yield is a piffling 5% (last two dividends were 1.33 and 0.8p and share price of 42p)
BullDog wrote:88V8 wrote:idpickering wrote:Q3 2022 Interim Management Statement.
Our income growth, balance sheet momentum and resilient customer franchise have enabled the Group to deliver a
robust financial performance and strong capital generation, alongside updated guidance for 2022.
But the SP continues to malinger, the yield is piffling, and the govt, egged on by the 'Bolshevik Broadcasting Corp', seems likely to steal more of shareholders' proceeds in tax.
I know some on here are long UK banks, well all I can foresee is they'll wait a long time.
V8
I have given up on UK banks sometime ago. Too much of a political football. Might even see a windfall tax again on them if they make any serious money from rising interest rates. Lose/lose situation with banks.
"While the operating environment has changed significantly over the last year, the Group has delivered a robust financial performance with strong income growth, continued franchise strength and strong capital generation, enabling increased capital returns for shareholders.
A year ago we announced our ambitious new strategy with the aim of growing our business and deepening relationships with our customers, meeting more of their financial needs. We have made a good start to delivery and remain confident in our ability to deliver for all stakeholders.
We know that the current environment continues to be challenging for many people and have mobilised the organisation to further support our customers. Our purpose-driven strategy is more relevant now than ever before. We remain committed to Helping Britain Prosper and helping the country recover from the current economic uncertainties.
We continue to believe our strategy will create higher, more sustainable returns, as reflected in our enhanced guidance. We are excited about the opportunities ahead."
Charlie Nunn, Group Chief Executive
Good start to our new strategy with early evidence of delivery
• Significant additional support for customers and colleagues given cost of living pressure
• Changing environment supports the strategic business case. Purpose-driven strategy will enable enhanced customer support whilst delivering efficient growth and diversification. Strategic investment of £0.9 billion in 2022
• Confidence building in strategic financial benefits with early momentum; £0.3 billion of gross cost saves1
• New organisational structure, leadership team and operating model implemented to deliver change more effectively
• Acquisition of Tusker, a vehicle management and leasing company focused on electric and low emissions vehicles, further developing the Group's Motor business and aligned to our sustainability ambitions
• Supporting the transition to a low carbon economy with new sector-based 2030 emissions reduction targets, a new net zero ambition for our supply chain, alongside launching our first Group climate transition plan2
Robust financial performance and continued business momentum
• Statutory profit before tax of £6.9 billion (2021: £6.9 billion), with higher net income and lower total costs offset by impairment charges as a result of the revised economic outlook (versus a significant write-back in 2021)
• Net income of £18.0 billion, up 14 per cent, supported by continued recovery in customer activity and UK Bank Rate changes, alongside continued low operating lease depreciation
• Underlying net interest income up 18 per cent, primarily driven by a stronger banking net interest margin of 2.94 per cent in the year (3.22 per cent in the fourth quarter) and increased average interest-earning assets
• Other income of £5.2 billion, 4 per cent higher, building our confidence in growth potential. The fourth quarter included a £0.2 billion benefit from insurance assumption and methodology changes
• Operating costs of £8.8 billion, up 6 per cent compared to 2021 and in line with guidance, reflecting stable business-as-usual costs despite inflationary pressures, alongside higher planned strategic investment and new business costs. Remediation of £0.3 billion, down 80 per cent in the year
• Underlying profit before impairment up 46 per cent to £9.0 billion in the year (with £2.4 billion in the fourth quarter), as a result of solid net income growth
• Asset quality remains strong and the portfolio well-positioned in the context of cost of living pressures. Underlying impairment charge of £1.5 billion (£0.5 billion in the fourth quarter) and an asset quality ratio of 32 basis points reflect strong observed credit performance and a deteriorating economic outlook, partly offset by COVID-19 releases
And later;
Dividends on ordinary shares and share buyback
The Board has recommended a final ordinary dividend, which is subject to approval by the shareholders at the Annual General Meeting on 18 May 2023, of 1.60 pence per ordinary share (2021: 1.33 pence per ordinary share) totalling £1,062 million (2021: £930 million, following cancellations of shares under the Group's buyback programme up to the record date). These condensed consolidated financial statements do not reflect the recommended dividend.
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