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

Lloyds to cut 9,000 jobs over next three years - sources

LLOYDS BANKING GROUP PASSES EBA STRESS TEST

StockMarketWire.com
Equity research analysts at Jefferies have added Lloyds Banking Group (LON:LLOY) to its list of stocks to avoid and moved to an 'underperform' investment call (previously rated 'hold') in a note to investors, today.

The broker said: "Risk/reward has changed from symmetric to asymmetric post the EBA's stress test and ramifications for the BoE UK variant.

The bottom line is LLOY will have to run with a higher capital ratio than originally thought and 2016E ROTE is just 11.5%.

We do not expect a material dividend until 2016."

Price target stays at 69 pence a share

The others from today :-

Numis Buy 75.19 97.00 97.00 Reiterates

Credit Suisse Neutral 75.19 - 72.00 Reiterates

Espirito Santo Execution Noble Sell 75.19 70.00 70.00 Reiterates

Interim Management Statement

RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014

Further strategic progress; supporting and benefiting from the UK economic recovery
· Lending growth in key customer segments, and deposit growth in relationship brands
· Further TSB divestment of 11.5 per cent in the third quarter with shareholding now reduced to 50 per cent
· Run-off assets reduced by £10.6 billion to £22.7 billion and international presence reduced to seven countries
· Capital position further strengthened: fully loaded CET1 ratio of 12.0 per cent (30 June 2014: 11.1 per cent fully loaded; 31 Dec 2013: 10.3 per cent pro forma) and transitional total capital ratio of 21.0 per cent
· Fully loaded Basel III leverage ratio of 4.7 per cent (30 June 2014: 4.5 per cent fully loaded; 31 Dec 2013: 3.8 per cent pro forma)

Substantial increase in underlying profit and returns
· Underlying profit increased 35 per cent to £5,974 million
· Return on risk-weighted assets increased to 3.05 per cent (first nine months of 2013: 2.01 per cent)
· Income of £13,898 million, up 3 per cent excluding St. James's Place effects in 2013
- Net interest income up 11 per cent, driven by margin improvement to 2.44 per cent
- Other income down 8 per cent given disposals and a challenging operating environment
· Underlying costs down 6 per cent and down 3 per cent to £6,907 million including FSCS timing effects
· Impairment charge reduced 59 per cent to £1,017 million; asset quality ratio improved 36 basis points to 0.27 per cent

Statutory profit before tax of £1,614 million; tangible net asset value per share of 51.8p
· Statutory profit before tax of £1,614 million (first nine months of 2013: £1,694 million)
· Additional £900 million provision for PPI in the third quarter
· Statutory profit after tax of £1,392 million (first nine months of 2013: £280 million)
· Tangible net asset value per share increased to 51.8p (30 June 2014: 49.4p, 31 Dec 2013: 48.5p), driven by underlying profitability

Confidence in delivering strong and sustainable returns
· 2014 full year asset quality ratio now expected to be around 30 basis points; guidance previously around 35 basis points for the full year
· Other guidance reconfirmed
- 2014 full year net interest margin expected to be around 2.45 per cent
- Run-off assets expected to be less than £20 billion by the end of 2014
- Full year statutory profit to be significantly ahead of first half

Dividend
· Ongoing discussions with the PRA regarding the resumption of dividends

STRATEGIC UPDATE

KEY MESSAGES
· We are a low cost, low risk, customer focused, UK retail and commercial bank
· The strategy laid out in 2011 is now substantially complete. We have reshaped the Group, strengthened the balance sheet and delivered Simplification savings which have enabled reinvestment for growth
· Customers remain at the heart of our strategy. We will deliver the best customer experience by strengthening our multi brand, multi channel business model
· We will transform our digital capability, providing customers with simpler, seamless interactions across online, mobile and branches, and improving the efficiency of products and services
· We will sustain extensive customer reach through our branch network and telephony, adapting capability to service effectively more complex customer requirements
· The Group is well positioned for sustainable growth. We intend to grow our main retail businesses in line with market, and generate above market growth in areas where we are underrepresented, drawing on Group strengths to deliver competitive advantage
· We will deliver further improvements to our market leading cost position, a source of sustainable competitive advantage for the Group, delivering better value for customers and superior, sustainable returns for our shareholders
· We are issuing new medium-term targets for efficiency, risk and returns:
- Cost:income ratio to exit 2017 at around 45 per cent; targeting reductions in each year
- Simplification run-rate savings of £1 billion per annum by the end of 2017
- Asset quality ratio of around 40 basis points through the economic cycle, and lower than this over the next three years
- Sustainable returns on required equity of around 13.5-15 per cent by the end of the strategic plan period and through the economic cycle
· With the actions we are taking and our differentiated business model and strategic capabilities, the Group will become the best bank for customers, thereby enabling the delivery of superior, sustainable returns to shareholders

Deutsche Bank Buy 0.00 95.00 95.00 Reiterates

Investec Buy 73.51 86.00 86.00 Reiterates

Espirito Santo Execution Noble Sell 73.51 70.00 70.00 Reiterate

Numis Buy 73.76 97.00 97.00 Reiterates

"Magic" 100p in sight for Lloyds?

The recovery of Lloyds Banking Group (LLOY) seems to be on track with the release of better-than-expected third-quarter results. A further cut to its work force by 10% should slash costs, a move which some reckon could make it one of the most efficient banks in Europe.
Underlying profit rose by 41% to £2.2 billion in the third quarter, thanks to a boost to net interest income (up 10% to just over £3 billion), lower impairments and slight reduction to costs. Excluding the impact of its disposal of St. James's Place last year, profit rose by over a half in the first nine months of the year. Despite a larger-than-expected £900 million PPI hit in the third quarter, statutory pre-tax profit rose to £751 million from a £440 million loss last year. Net tangible asset value per share grew to 51.8p.

"No surprises the markets did not react well to the miss-selling front with PPI totalling another £900 million," said James Abbott, a trader at Accendo Market. "However, once these cobwebs are all out the cupboard what will hold this company back?"

Deutsche Bank Buy 73.50 73.50 95.00 97.00 Reiterates

(Reuters) - British bank Lloyds has taken another 900 million pound charge to compensate customers mis-sold loan insurance, delivering a further blow to the lender which only narrowly passed European health checks on the sector's finances.

The new charge announced on Tuesday took the bank's total cost to cover the mis-selling of payment protection insurance (PPI) to 11.3 billion pounds, more than any other bank and close to half of the total bill for the industry.

The policies were meant to cover repayments if customers fell ill or lost their jobs but were often sold to people who did not need them or would be ineligible to claim.

Analysts at Citi said they expected Lloyds Banking Group Plc to set aside another 1 billion pounds for PPI compensation next year and Lloyds Finance Director George Culmer told reporters on a conference call he could not rule out further increases.

Culmer said complaints about PPI had risen by "about 2 or 3 percent" in the third quarter from the previous three months, although he said they were still down 18 percent on the year.

Lloyds said that, if it were to see a similar level of complaints in the fourth quarter as in the third, the required provision would increase again by 600 million pounds. However, Culmer said complaints had fallen by about 8 percent in the first three weeks of October.

"It's certainly reassuring to see that it's started to fall again," he said.

The new mis-selling charge comes two days after the bank, 25 percent-owned by the British government, only narrowly passed a test set by regulators to assess whether banks have enough capital to weather another economic crash.

Lloyds, which was the worst performing British bank in the European stress tests, faces a further test by the Bank of England (BoE) in December which will measure its resilience against scenarios including a 35 percent decline in house prices and a rise in interest rates to 6 percent.

The result of that test will be key to whether the bank is cleared by Britain's financial regulator to pay its first dividend since it was rescued by a 20.5 billion pound government bailout during the financial crisis of 2007-2009.

"Whilst we do not see failure as having capital-raising implications, we no longer expect Lloyds to pay a 2014 dividend," said Macquarie analyst Ed Firth.

Culmer said he expected Lloyds to pass the BoE stress test and remained confident the bank would be cleared to pay a "modest" dividend for 2014.

"The discussions look at earnings, they look at capital and they look at stress tests. We consider ourselves to be in a good position with regards those three criteria as we go into those discussions," Culmer said.

Exane BNP Paribas Outperform 76.38 - 115.00 Reiterates