Not sure if this thread will catch on, because no-one here seems to have much to say about individual british banks, but thought i would add this header to see if we could discuss dividend yields, exposure to sup-prime, good ones, bad ones, take-over targets, when the crisis will end? do you think they have learnt their lesson? I, for one, as a property developer have seen first hand how much stricter they have become with lending habits, struggling to get decent rates for re-mortgaging, basically they appear scared to lend to anyone.

I was surprised that lloy didn't take the opportunity to have a rights issue, over the next 6/12 month's there will be plenty of investment situations both in the UK and abroad. If lloy had stated this as the reason for a rights issue, I think the city would have looked on lloy very favourably.

BB. or AL. would be candidates in the UK, but I would think lloy would want to diversify abroad.

lloy is my only holding at present in sector and I did wonder myself weather they would follow suit with a rights issue. Who knows, perhaps they are in the queue. If any acquisition did look favourable they could ask shareholders for funds at the same time. To the surprise of the market lloy and Barc both recently increased their dividends so I wonder if they would have done this if they were thinking of having a rights issue. In the case of Barc, there has been speculation that they may raise futher funds by selling a stake to a sovereign wealth fund.

like you lloy is my only holding in the banking sector, I had a plan to buy into RBS but have changed my mind after reading that Sandy Chen from Panmure Gordon has just slapped a 190p price target on them. He is someone who has made very good calls throughout this credit crunch. It's a hard call now as to which other bank to invest in, still more pain to come I fear.

I certainly wouldn't buy into a bank that was going to pay out future dividends in shares. Doesn't leave alot of choice really, I will top up on more lloy soon hopefully.

Nobody on the thread seems to be paying much attention to HSBC. Their share price is pretty much where it was before the credit crunch hit and seems to be one of the better investments in the sector.

why have rbs tanked today? i know the rights issue will reduce the SP but even so isn't this price a bit low. i have noted Sandy chen's comments and will leave on watch list as maybe further to fall i was just wondering why?
Alex

This is because the rights issue is seen as a dire decision or last resort to raise money. This is not normally a route taken by banks. The credit crunch is still far from over and further writedowns can certainly be expected.

Barclays unveils 1 bln pound credit-crunch hit, Q1 profits fall




Barclays Capital remained profitable overall during the period.

Barclays added that it expects its Tier One equity and capital ratios to be 'slightly lower' at the end of June than the 7.6 percent and 5.1 percent reported at the end of December.


The bank, widely seen as likely to follow rivals Royal Bank of Scotland Group PLC, HBOS PLC, and Bradford & Bingley PLC in launching a rights issue to bolster its capital, said the ratios would reach their target levels of 7.25 percent and 5.25 percent respectively 'in time'.

5.1% is dangerously close to the minimum demanded by the FSA under capital adequacy rules of 5%.

Barclays state they are keeping their options open as regards capital raising.

Alex, the price has been adjusted because of the rights issue (RBSN presently trading at 68p/68.25p).

I should add that shareholders who have not yet received their rights issue documents will be selling some of their existing holding to pay for the new shares, rather than wait to receive/deal the rights document. I imagine that the sp will settle and rise a little over the next few days, but then again........ Sand Chen might just be right!

kimoldfield. My Nil Paid RBS rights haven't been credited to my account yet.
Am I right in thinking what you are saying is that they are trading today at around 68p?

Dealer, yes they are trading today, trade low has been 64.5p,high 78.25p, present is 73.5/73.75.
I have a certficated holding and another in a nominee name, my nominee account has been credited with the rights and my postman has this minute delivered my certificated rights! Trade epic for the rights is RBSN

Sorry, that should read RBSN
I have corrected it now.

many thanks.

anyone know what the average SP for LLOY was when they went ex-divi, so I can work out if they gave me enough shares and whether they are in profit or not. I assume you only get whole shares and what happens to the loose change. does it go to charity or get passed onto you at a later date?
Alex

Alex, the sp should be stated on the Share Purchase Advice which you get with your new certificate. The fraction left over is held to be put towards your next div. Historic prices for LLOY can be obtained at
The dates you would need for the last DRIP are 5 March to 12 March inclusive.

Link didn't work! I'll try it this way instead.

http://www.investorrelations.lloydstsb.com/ir/hist_share_price_download_page.asp

Kim
I got my shares electronically so it didn't show up, I may have a letter at home with this info on but not there until tomorrow night.
thanks for the link though
Alex
:)

I hold my shares in a nominee account and only got money How many shares were we meant to get. Hope this is not a silly question.