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Following its recent announcement of its intention to float TSB, Lloyds Banking Group today announced the price range for the IPO and the intention for TSB to publish, later today, the Prospectus for the Offer.

· The price range for the Offer has been set at between 220 pence to 290 pence per Ordinary Share

· The expected offering size is 125 million Ordinary Shares (prior to any exercise of the 10% over-allotment option), representing 25% of TSB's existing Ordinary Shares in issue

· At the mid-point of the price range, TSB's market capitalisation would be approximately £1,275 million

· Final pricing is expected to be announced on or around 20 June 2014, with conditional dealings in TSB shares beginning on the London Stock Exchange on the same day.

TSB is a “completely clean” bank – no scandals.
It is thought it has 40-50% growth potential.
It is possibly the financially strongest major bank in the UK.

Should be a very popular IPO, IMHO. I'm in, as will be the rest of the family.

Not sure I will be holdong these for more than a week once float is undertaken.



In its prospectus TSB said of the interest-only loans: “TSB faces risks associated with the concentration of its credit risk, geographically and relating to its interest-only mortgage portfolio, which amounts to approximately 45 per cent of TSB’s residential mortgage lending as at 31 March 2014.

“As these mortgages near maturity, TSB may face greater repayment and asset quality risks than competitors with a lower proportion of interest-only mortgages.”

The bank also cited the fact that Lloyds will be responsible for its IT and other services as a risk, given that Lloyds has “no experience of providing services of a comparable breadth and scale to a third party financial institution”. It admitted that its ability to operate would be “jeopardised” were Lloyds to hit fresh problems.

TSB said it planned to increase its share of the current account market from 4.2 per cent to 6 per cent, which is its share of bank branches. It has 631 in total and is planning to relocate some and refurbish others. It claims to have branches within two miles of most Britons.

With 4.5 million customers, TSB said the business made an underlying profit of £172m last year, compared with £28m in 2012 and £57m in 2011. It could ultimately pay between 40 and 60 per cent of its earnings as dividends.

Exane BNP Paribas Outperform 76.66 76.66 115.00 120.00 Reiterates

Santander Buy 77.99 77.99 - 96.00 Reiterates

TSB IPO Offer Price

TSB Banking Group plc IPO: Announcement of Offer Price

Lloyds Banking Group plc ("Lloyds") today announces the pricing of the initial public offering of TSB.

· The Offer price has been set at 260 pence per TSB Ordinary Share (the "Offer Price")
· Based on the Offer Price, TSB's market capitalisation is approximately £1,300 million
· Due to significant investor demand for TSB Ordinary Shares, the Offer Size has been set above the expected Offer Size of 25%. The Offer comprises 175 million existing TSB Ordinary Shares being sold by Lloyds (prior to any exercise of the over-allotment option), representing 35% of the 500 million TSB Ordinary Shares that will be in issue at Admission
· Approximately 30% of the Offer has been allocated to retail investors under the Intermediaries Offer
· Gross proceeds realised by Lloyds will be £455 million (prior to any exercise of the over-allotment option)
· Following Admission, it is expected that Lloyds will hold, through Lloyds Bank plc, 65% of TSB's Ordinary Shares (assuming no exercise of the over-allotment option); this holding will be subject to a 90-day lock-up agreement (from the date of Admission), the terms of which are described in the Prospectus
· As stabilising manager on behalf of the Underwriters, J.P. Morgan Cazenove has been granted an over-allotment option by Lloyds, exercisable no later than thirty days from today, over up to 17.5 million TSB Ordinary Shares, representing 10% of the Offer
· Conditional dealings in TSB Ordinary Shares will commence on the London Stock Exchange at 8.00 am today
· Admission and the commencement of unconditional dealings in TSB shares are expected to take place at 8.00 am on 25 June 2014 under the ticker TSB (ISIN: GB00BMQX2Q65)

RBS read across.

25 July 2014

LLOYDS BANKING GROUP CONFIRMS LATE-STAGE SETTLEMENT DISCUSSIONS WITH AGENCIES

Lloyds Banking Group plc ("LBG") notes the recent media coverage regarding potential settlements with a number of government agencies and their investigations into submissions, communications and procedures around the setting of Interbank Offered Rates and other benchmarks.

LBG confirms that it is in late-stage settlement discussions with a number of agencies. The settlements remain to be agreed and LBG expects they will include the payment of penalties. LBG will update the market on these issues as appropriate.

Half Year Results

Supporting and benefiting from the UK economic recovery; delivering benefits for customers and shareholders
· Lending growth in key customer segments, and deposit growth in relationship brands
· Launched our Helping Britain Prosper plan, formalising commitments to households, businesses and communities
· Continue to invest in channels and products to meet customer needs whilst improving customer service

Further substantial increase in underlying profit and returns
· Underlying profit increased 32 per cent to £3,819 million (up 58 per cent excluding St. James's Place)
· Return on risk-weighted assets increased to 2.90 per cent (half-year to 30 June 2013: 1.95 per cent)
· Underlying income of £9,252 million, up 4 per cent excluding St. James's Place effects in 2013
- Net interest income up 12 per cent, driven by margin improvement to 2.40 per cent
- Other income down 8 per cent given disposals and a challenging environment
· Underlying costs down 2 per cent to £4,675 million, and down 6 per cent excluding FSCS timing effects
· Impairment charge reduced 58 per cent to £758 million; asset quality ratio improved 39 basis points to 0.30 per cent

Statutory profit before tax of £863 million; tangible net asset value per share of 49.4p
· Statutory profit before tax of £863 million, including charge for legacy issues of £1,100 million (half-year to 30 June 2013: £2,134 million)
· Tangible net asset value per share increased to 49.4p (31 Dec 2013: 48.5p); down 1.3p in second quarter principally due to legacy charges

Reshaping and strengthening of Group to create a focused, low-risk business substantially complete
· TSB Initial Public Offering successfully completed: 38.5 per cent sold
· Run-off portfolio reduced by £8 billion in first half to £25 billion and international presence reduced to eight countries
· Capital position further strengthened: fully loaded CET1 ratio of 11.1 per cent (31 Mar 2014: 10.7 per cent pro forma; 31 Dec 2013: 10.3 per cent pro forma) and total capital ratio of 19.7 per cent
· Fully loaded Basel III leverage ratio of 4.5 per cent (31 Mar 2014: 4.5 per cent pro forma; 31 Dec 2013: 3.8 per cent pro forma)

Confident in delivering strong and sustainable returns: margin, impairment and run-off guidance enhanced
· 2014 full year net interest margin now likely to be around 2.45 per cent
· Following strong first half performance, now expect full year asset quality ratio of around 35 basis points
· Now expect run-off assets to be less than £20 billion by the end of 2014
· Expect full year statutory pre-tax profit to be significantly ahead of the first half
· Will apply to the Prudential Regulatory Authority (PRA) in the second half of 2014 to restart dividend payments
· Strategic update will be presented to the market in the autumn

Deutsche Bank Buy 76.41 76.41 - 87.00 Reiterates

Thanks Skinny. No news flag on MAM though.

Time for Antonio to go?

Deutsche Bank Buy 74.25 74.25 87.00 89.00 Reiterates

Lloyds could move south if Scots vote for independence

(Reuters) - Lloyds Banking Group is considering having its registered office in London rather than Edinburgh should Scots vote for independence, banking industry sources told Reuters.

Lloyds, which owns Bank of Scotland, has finalised contingency planning ahead of the Sept. 18 vote. The chances of secession have increased with support for Scottish independence rising dramatically in August.

But they only moved to Scotland expecting a great time having bought the already damaged HBOS [ DYOR ], that's the way I saw that dissasterous 2008 deal that savaged their sp. - and it's been sub £1 ever since.

Deutsche Bank Buy 74.00 74.00 89.00 94.00 Reiterates

Why are Lloyds shares falling more than RBS?

Have a look at some of these links

LLOY/ RBS

Result of placing in TSB Banking Group plc

Further to the announcement released on 25 September 2014, Lloyds Banking Group plc announces that it has sold 57.5 million ordinary shares (the "Placing Shares") in the Company, representing approximately 11.5% of the Company's issued ordinary share capital, at a price of 280 pence per share (the "Placing") raising aggregate gross sale proceeds of £161 million.

Following completion of the Placing, which is expected to take place on 1 October 2014, Lloyds Banking Group plc, through Lloyds Bank plc (a wholly owned subsidiary of Lloyds Banking Group plc), will continue to hold approximately 50% of the Company's ordinary shares. It is expected that Lloyds Banking Group plc will continue to consolidate the Company's results in its accounts.

UBS Investment Bank ("UBS") acted as bookrunner in connection with the Placing.

Deutsche Bank Buy 75.90 75.90 94.00 94.00 Reiterates