7am skinny!

Hope they are better than RBS !

Half Yearly Report

Improvement in underlying and statutory profit with balance sheet further strengthened
· Underlying profit of £4,383 million, an increase of 15 per cent on the first half of 2014
· Total income up 2 per cent to £8,968 million1
− Net interest income of £5,715 million, up 6 per cent, primarily driven by margin improvement to 2.62 per cent
− Other income lower at £3,253 million, largely due to disposals and run-off, but up 4 per cent in last quarter
· Operating costs flat after increased investment; cost:income ratio improved by 0.7 percentage points to 48.3 per cent
· Impairment charge down 75 per cent to £179 million; asset quality ratio improved 21 basis points to 0.09 per cent
· Underlying return on required equity of 16.2 per cent, up 2.2 percentage points on the first half of 2014
· Statutory profit before tax up 38 per cent to £1,193 million (2014: £863 million), including charge of £1,400 million for PPI and £660 million charge relating to the disposal of TSB
· Statutory return on required equity of 3.7 per cent, up 0.6 percentage points on the first half of 2014
· Strong balance sheet and liquidity position with a CET1 ratio of 13.3 per cent (31 Dec 2014: 12.8 per cent); a total capital ratio of 21.7 per cent; and a leverage ratio of 4.9 per cent
· Tangible net assets per share post dividend of 53.5 pence (31 Dec 2014: 54.9 pence)

Continued focus on supporting customers and the UK economy through the successful delivery of our strategy
· Creating the best customer experience through multi-channel, multi-brand strategy and increased investment in digital; key customer satisfaction metrics continue to improve, with net promoter scores up 3 points this year and by 60 per cent since 2010
· Continue to become simpler and more efficient through process redesign and automation; run-rate savings of £225 million in the new Simplification programme and we remain on track to deliver the targeted savings of £1 billion by the end of 2017
· Delivering sustainable growth in key customer segments over last 12 months
− Meeting our Helping Britain Prosper Plan commitments by supporting 1 in 4 first-time buyers and 1 in 5 new business start-ups
− Net lending of £1.5 billion to SMEs, up 5 per cent and ahead of the market
− UK Consumer Finance lending growth of 17 per cent, with 34 per cent growth in motor finance
· Completion of sale of TSB to Banco Sabadell will enable the Group to meet its commitment to the European Commission ahead of the mandated deadline
· UK government stake reduced to less than 15 per cent (as at 15 July 2015)

Guidance for 2015 net interest margin and asset quality ratio improved with other guidance reconfirmed
· Net interest margin for the full year improved to around 2.60 per cent
· Full year asset quality ratio improved to around 15 basis points (previously around 25 basis points)
· Continue to expect other income to be broadly stable in 2015
· Continue to expect full year cost:income ratio to be lower than full year 2014 ratio of 49.8 per cent

Dividend
· Interim dividend of 0.75 pence per share amounting to £535 million
· Further guidance on capital and dividend policy

1 Total income, operating costs and impairment exclude TSB.


more....

'Today's results demonstrate the strong progress we have made in the first half of the year. The improvement in our profitability and capital position has enabled the Group to announce an interim dividend payment of 0.75 pence per share to our shareholders. We remain focused on our aim to become the best bank for customers and shareholders while at the same time supporting the UK economy.'

Statutory profit before tax up 38 per cent to £1,193 million (2014: £863 million), including charge of £1,400 million for PPI and £660 million charge relating to the disposal of TSB

No news flag on stockwatch :-(

Market disappointed!
Even a divi increase up to 0.9p would have put a much more positive slant to the results.

and 0.9p was what the analysts were expecting! That little would have made a huge difference.
Now we have to wait for that special payment (pie in the sky) and then the final div.

Patience!

Lloyds shareholders question government's sale plan

Beaufort Securities Hold 83.83 - - Retains

Barclays Capital Overweight 83.83 105.00 105.00 Retains

JP Morgan Cazenove Overweight 83.83 105.00 105.00 Reiterates

We can but hope :- Lloyds shareholders set for massive windfall

Fingers crossed.

Swines! - Exane BNP Paribas Outperform 82.37 95.00 90.00 Reiterates

"On 4 August 2015, the Group was notified that Karin Cook, a PDMR, sold 78,886 Shares in the Group on the same day at a price of 82.52 pence per Share. Following the disposal, Karin Cook continues to meet her current shareholding requirements"
.....?

Have a read.

It just means that she has fulfilled the requirement of a PDMR in decalring her share holding/dealing in the company (I think)!

Perhaps, she wants a new car?

8-)

Lloyds shareholders set for massive windfall
By Lee Wild | Mon, 3rd August 2015 - 13:10
Share this
Lloyds shareholders set for massive windfallLloyds Banking Group's (LLOY) half-year results may have been mixed, but the high street lender still has an army of fans in the City. Two of them have just upgraded forecasts for 2015 and one thinks the bank could return as much as £25 billion to shareholders over the next three years.
Second-quarter numbers were largely positive, with a sharp drop in impairments meaning underlying pre-tax profit of £2.2 billion beat consensus estimates by 13%. A £1.4 billion charge for payment protection insurance (PPI) mis-selling was "disappointing" though, and the CET1 ratio - a key measure of balance sheet strength - missed forecasts.

But, on the day that the UK government sold its stake in Lloyds down below 14%, JP Morgan says it believes the bank's capital generation exceeds upcoming pressures from risk-weighted assets (RWA) harmonisation and conduct. It also upgrades adjusted pre-tax profit forecasts by 3% for this year to £8.75 billion. Of course, the chancellor's post-Summer Budget tax grab means EPS cuts for the following two years.

"With the shares trading at 9.1x P/E vs European banks sector at 10.5x P/E FY17E and 1.4x P/TNAV for 14.9% RoNAV 16E, we remain overweight," the broker says, repeating its 105p price target.

Coincidentally, that's also what the team at Barclays reckons Lloyds shares will be worth.

"Lloyds shares currently trade at a 1.5x 2015E tangible book multiple. While this may appropriately reflect the returns that the company can generate, we do not believe that it factors in the extent of capital return that we expect over the coming years," says analyst Rohith Chandra-Rajan.

And the return could be substantial. "We continue to see the prospect of capital return and the final exit of the UK government as the main catalysts for share price outperformance from Lloyds over the next 12 months."



(click to enlarge)

Barclays expects Lloyds to be significantly capital accretive with the current 13.3% common equity tier 1 ratio (CET1) ratio forecast to rise above 14% this year and to near 18% in 2018.

"We forecast £14 billion of dividends being paid out to 2018 with capacity to return an additional £7-11 billion of capital to shareholders through share buybacks or special dividends," adds Chandra-Rajan. "That’s a total of £21-25 billion of capital that could be returned, or 35-40% of the company's current market capitalisation."

That works out at 30-35p a share, with about 20p in ordinary dividends and the rest through additional capital distributions. "We shouldn’t have to wait long to see this policy implemented."

Just what shareholders receive could depend on potential changes to risk weightings, particularly in the mortgage book. This, says Barclays, could ultimately result in mortgage RWA floors implemented at somewhere between 15% and 25% (see below).



(click to enlarge)

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Fred - see post 4810 above :-)

Heading for 80p again. I can't believe it.

I first bought these in 2011 for 39p and ever since have been selling quarter or a third and then buying them back cheaper over and over.

I last sold out at 80p and for the last few months thought it would never come back down again

I think I'm more upset that's it drifted all the way back down here than I am curious to see if I'll get the opportunity to get in around 77-78p

Skinny,

Did read and felt better, but have to admit I sold out at a profit but stupid enough to buy some SBS on the drop and thought double bounce and not smiling as much.

Thought it worth about 100-110p!