Lloyds (LLOY)

[mark88man]

I did well with LLOY last time they entered the 20p range at the start of the decade. Selling out mainly in the 60-70p range.

I then stopped tracking until I saw a fool (the other one) article explaining why I shouldn't buy them. Which immediately piqued my interest, especially as I hadn't noticed they were in the 20s again. I ended up buying at 26p, just off the bottom, with a view to a 3-5 years hold in my DC (Higher Risk Pot).

I expect a bumpy ride, but was recently reassured by the BARC results, even with their greater non UK business, I think some of the strength carries across.

Expecting some turbulent times through winter through Brexit and CoVid, but I do think a lot of that is priced in.

Will keep an eye on this thread, as informed comment is becoming very hard to find - thank you

[idpickering]

2020 Q3 Interim Management Statement

The impact of the coronavirus pandemic on the global economy and on people and businesses within the UK has been unprecedented. We remain focused on working together with the Government and our regulators to ensure that we continue to support our customers in this challenging time.

Although our performance has clearly been impacted by the pandemic and the associated challenging economic environment, I am pleased that we are now seeing an encouraging business recovery and, with impairments significantly lower, a return to profitability in the third quarter. In particular, we increased open mortgage book lending by £3.5 billion in the quarter, with a 22 per cent share of approvals building a strong pipeline for the fourth quarter, and have supported businesses with an 18 per cent share of Government support scheme lending. Given the financial performance we were able to further strengthen our capital position to 15.2 per cent and enhance our guidance for impairment and risk-weighted assets.

The pandemic has accelerated many trends around ways of working and digital adoption and our long-run investment in digital propositions has positioned the Group well to continue to support our customers. As a result the number of digital users continued to increase, the proportion of products sold digitally is rising and customer satisfaction is at record levels. Our digital proposition and focus on technological change will remain a priority as we accelerate our transformation.

Societal expectations of companies, particularly regarding sustainability, continue to increase and we are taking action to build an inclusive and more sustainable future. We have announced a Race Action plan to drive cultural change, including a clear target to increase Black representation in senior roles. To support the transition to a more environmentally sustainable future, we have also announced an ambitious goal to help reduce the carbon emissions we finance by over 50 per cent by 2030.

Lloyds Banking Group plays a vital role in the UK economy and I remain very proud of the support that we have provided over the course of 2020. Once again I would like to express my gratitude to all of my colleagues whose dedication and hard work ensures that we continue to deliver vital services to our customers and communities, while supporting those most in need throughout the pandemic.

Although the outlook remains uncertain, our customer-focused strategy and the strength of the Group's business model will allow us to continue to help Britain recover and play our part in helping to return the UK to prosperity. This is fully aligned with the Group's long-term strategic objectives, the position of the franchise and the interests of our shareholders.

António Horta-Osório,

Group Chief Executive

https://www.investegate.co.uk/lloyds-ba ... 00085455D/

[idpickering]

Charlie Nunn appointed Group Chief Executive

Lloyds Banking Group plc is pleased to announce that, subject to regulatory approval, Charlie Nunn is to be appointed to the role of Group Chief Executive Officer and Executive Director.

Mr. Nunn is currently global Chief Executive, Wealth and Personal Banking at HSBC. Since joining HSBC in 2011, Mr. Nunn has held a range of leadership positions including Global Chief Operating Officer of Retail Banking and Wealth Management, Group Head of Wealth Management and Digital, and Chief Executive of Retail Banking and Wealth Management, assuming his current role in February 2018. He began his career at Accenture where he worked for 13 years in the US, France, Switzerland and the UK and became a Partner. He then moved to McKinsey & Co. as a senior Partner for 5 years.

Robin Budenberg, Non-Executive Director and incoming Chairman from 1 January 2021, said "I am excited about Charlie's vision for Lloyds Banking Group, as well as his passion for and commitment to our purpose of helping Britain prosper. Given his career track record, he will bring world class operational, technology and strategic expertise to build on the strengths of the existing management team. I look forward to welcoming him to the Group."

Charlie said "I feel particularly lucky to be joining Lloyds Banking Group at this important time. Lloyds' history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services. I look forward to building on the work of António and the team and their commitment to helping Britain prosper."

https://www.investegate.co.uk/lloyds-ba ... 00098410G/

[idpickering]

Lloyds Bank Scraps All Bonuses for 2020 After Pandemic Hammers Profit

Lloyds Banking Group Plc is canceling bonuses for all staff this year as the Covid-19 pandemic weighs heavily on its earnings.

https://www.msn.com/en-us/money/news/ll ... r-BB1c2BSb

[scrumpyjack]

There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

[dealtn]

There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

I know you are probably being humorous, but that isn't true.

The decision seems somewhat hard on the majority of ordinary staff, a large number of whom aren't particularly well paid.

[johnhemming]

My understanding was that dividends were limited for the total of 2019 and 2020 to 25% of profit. I have not tried to work out what that should be. However, I would not be surprised by Lloyds deciding not to have lots of press stories about multi million pound bonuses (even if most bonuses are for relatively junior staff).

[scrumpyjack]

There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

I know you are probably being humorous, but that isn't true.

The decision seems somewhat hard on the majority of ordinary staff, a large number of whom aren't particularly well paid.

I completely accept that there are many hard working junior people in the banks who may be deserving of bonuses in normal circumstances. But my impression is that banks have for years given grossly excessive bonuses to more highly paid staff and directors which were not IMO appropriate. Certainly given the poor profitability of banks.

After the GFC the banks were meant to have turned over a new leaf and any advice or 'product' sold was meant to be in the client's best interests.
I had personal experience of an attempt by the bank I had been a customer of 50 years trying to sell me a completely inappropriate 'product' which would have given them a huge commission. Fortunately I read the small print and refused to sign it. This was where the branch had tried to push me to talk to someone in their city head office as they saw I had a very large sum in a deposit account. So forgive me if I am very sceptical of the big banks. I suspect it is generally the same people in many key positions as it was then, and however much 're-education' they have been given a leopard does not change its spots. It is very hard to change the culture of an organisation.

The recent publicity of the Amanda Staveley case did not show Barclays executives in a good light! (The case I refer to was NatWest/RBS, not Barclays)

I am a retired chartered accountant so reasonably able to look at these things objectively.

[dealtn]

There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

I know you are probably being humorous, but that isn't true.

The decision seems somewhat hard on the majority of ordinary staff, a large number of whom aren't particularly well paid.

I suspect it is generally the same people in many key positions as it was then, and however much 're-education' they have been given a leopard does not change its spots. It is very hard to change the culture of an organisation.

I only have inside information on one UK bank.

A huge turnover of key personnel from the days of the "GFC", but I agree it is very hard to change the culture of an organisation.

That's not to say bonuses, indeed remuneration, haven't changed hugely in that time. For most of the layers, excluding the extreme bottom, that is the case.

[scrumpyjack]

As pointed out in todays' tory graph, within 3 hours of announcing no bonuses for the workers, an RNS was issued detailed loads of free shares, tax paid, for the directors.

"Got to chuckle. Apparently within 3 hours of advising their ‘colleagues’ that the truly awful year meant that everyone was going to have to share the pain, the Directors had awarded themselves over 1.5million free shares all tax paid as part of their quarterly fixed share award! As Marie Antoinette stated ‘let them eat cake’. Contemptible behaviour of the highest order. How do these people live with themselves?

Released : 17/12/2020 14:00
RNS Number : 0415J
Lloyds Banking Group PLC
17 December 2020
Fixed Share Awards

This announcement details the number of Shares acquired by PDMRs in respect of the fourth quarter of 2020 under the Group's Fixed Share Award. In this respect, the PDMRs listed in the table below acquired on 17 December 2020, after the settlement of income tax and national insurance contributions, the number of Shares as set out by their name. The acquisition price was 36.831 pence per Share.

The Shares will be held on behalf of the PDMRs and will be released over a three year period, with one-third being released each year on 17 December.

Name Shares
António Horta-Osório 377,738
William Chalmers. 181,314
Antonio Lorenzo. 179,803
Vim Maru. 179,803
Zak Mian 163,686
David Oldfield 176,278
Janet Pope 125,912
Stephen Shelley 178,796
Andrew Walton. 121,780

[idpickering]

Finals here;

https://www.investegate.co.uk/lloyds-ba ... 00041120Q/

[dealtn]

Finals here;

https://www.investegate.co.uk/lloyds-ba ... 00041120Q/

Main highlights are the significantly larger impairment charge (I will look at the detail later, time permitting) up to £4.2bn from £1.3bn. Assuming this is a historic issue as the economy moves into a post-Covid world, this isn't important.

The capital ratio is now 16.2%, well above the prudent minimum required by the regulator. Without checking I can't recall it being this high before. There is plenty of fuel here to either invest in new business, or with less ambition, return it to shareholders.

A slight concern that the net interest margin is falling, but a gradual move back to a more normal policy interest rate will help here, when it arrives.

The shares are above 40p for the first time in nearly a year.

[Wizard]

What I find interesting is the multiple references to the dividend being as much as the PRA would allow. Given the hih CET1 ratio I presume that is not what is capping the dividend, but is it in the public domain what the limiting factor is? Or is this just a case of 'the Board doth protest too much, methinks...'?

[Dod101]

What I find interesting is the multiple references to the dividend being as much as the PRA would allow. Given the hih CET1 ratio I presume that is not what is capping the dividend, but is it in the public domain what the limiting factor is? Or is this just a case of 'the Board doth protest too much, methinks...'?

There is a complicated formula set by the PRA. I am hopeless at providing links but if you Google PRA statement on distributions by UK banks, it should come up. It is not I think that the Board is making it difficult. The same situation has arisen with all the UK banks at this time.

Dod

[dealtn]

Finals here;

https://www.investegate.co.uk/lloyds-ba ... 00041120Q/

A slight concern that the net interest margin is falling, but a gradual move back to a more normal policy interest rate will help here, when it arrives.

The slight concern, now I have read the RNS further, is that expectations now are for next year's net interest margin to be no worse than 240p, which is lower than this year. It is even lower than Q4 this year which is an improvement on Q3. I can't get to the bottom of why they are making that expectation. It could be ultra-prudence, but I wouldn't be sure. They have been, relatively speaking, paying increasingly more attractive savings rates to attract retail deposits, but with deposits now > loans this trend needn't continue. They have also been moving away from higher margin lending (specialist lending and unsecured loans) to basic commodity retail mortgages.

[monabri]

Announcement just after 2:30pm


https://www.investegate.co.uk/lloyds-ba ... 36272362Q/

Lloyds Banking Group
Summary Remuneration Announcement

[idpickering]

2021 Q1 Interim Management Statement

Here; https://www.investegate.co.uk/lloyds-ba ... 00047899W/

Also posted on HYPP.

Ian.

[Wasron]

Earnings per share for the quarter is 1.8p

If that were repeated across the year then the pre-covid level of dividends looks affordable again, once the PRA has been satisfied.

Looks like we’ll know more in three months

Wasron

[monabri]

Note the "accrual of dividends " statement.

[idpickering]

2021 Half-Year Results - Part 1 of 2

https://www.investegate.co.uk/lloyds-ba ... 00118336G/

2021 Half-Year Results - Part 2 of 2

https://www.investegate.co.uk/lloyds-ba ... 00158338G/