Morgan Stanley comment:
"While Q4 PBT is -8% light vs consensus at £1.76bn on lower other income / higher impairment , the 0.5p special dividend and PPI commentary appear to show the normalisation process for Lloyds is almost complete and that future underlying returns will accrue to shareholders which we think is key for the stock performance. Lloyds indicate that the extra £2.1bn PPI provision should be sufficient, that margin will expand to 2.70% in 2016 (+0.07% y/y) somewhat allaying fears of a squeeze from competition / low rates.
Overall slightly soft set of underlying Q4 earnings with underlying PBT of £1.76bn, 8% below consensus. Revenues 2% light despite solid NIM print at 2.64% in Q4 (flat q/q) and steady average interest earning assets as noninterest income was impacted by disposals and run-off as well as weather related insurance claims (c.£60 million). Costs were in line with consensus but impairments came in ahead of consensus at c.£230 million or 22bps.
PPI charge of £2.1 billion for the quarter reflects time bar and Plevin proposals and takes the total provided to £16 billion. The unutilised provision of £3.5 billion is expected to be sufficient to cover an average of c.10,000 complaints per week with associated admin costs (vs. 8,000 complaints per week in 2015). 4Q results also included £302 million of provisions for packaged bank accounts and “a number of other product rectifications”.
CET1 ratio 13% pro forma and TNAV 52.3p missed MSe due to higher than expected dividends. Full year dividends totalled 2p, with 1.5p ordinary and 0.5p special (in line with consensus but ahead of MSe) taking CET1 ratio down to 13% pro forma for 20bps benfit from an insurance dividend relating to 2015 to paid in 2016. RWAs £233 billion, -1% q/q. TNAV at year end was 52.3p (53.8p pre dividend) and company flagging improvement to 55.6p as at 19 February.
Outlook reassuring on NIM and asset quality, though cost:income / RORE targets pushed out: NIM guidance of 2.70% for FY16 +0.07% y/y is ahead of consensus (2.63%) and should significantly allay market fears. Asset quality ratio is now guided to below 20bps for FY16 (vs cons 19bps) which is in-line. The push out of the cost: income target (now 45% only expected in 2019) could be indicative of lower than expected other operating income, so we expect to see more explanation here on the call. Also given an underlying RORE of 15% in 2015 investors will naturally query why the 13.5%-15% target may not be met on a stat basis in 2017. The capital generation target is improved to 2% annum (was 1.5-2%) indicating c.£4.5bn of capital flow year (based on £223bn of RWAs) or c.10% of market cap which seems rather appealing."

Investec comment:
"Price: 62.2p | Target: Under Review | Rec: Buy
Once again we see Lloyds’ earnings recovery story as merely “deferred” rather than “cancelled”. A Q4 2015 Reported Loss of £0.5bn primarily reflects an unsurprising £2.1bn PPI top-up, while the underlying result was, we think, broadly in line with expectations. But with a proforma CET1 ratio of 13.0% Lloyds has declared an FY15 dividend of 2.25p plus a 0.5p “special”. Outlook comments should trigger consensus upgrades; 2016 NIM is guided to 2.70% (vs 2.63% in 2015). On 1.2x 2015 tNAV (52.3p) for 2017e RoTE of 12.2%. BUY.
For us, the key news is the actual dividend and the outlook for capital accretion and dividends. The 2.75p to be paid for 2015 represents a 4.4% yield. Lloyds is a ‘low/no growth’ bank, but capital accretion is now guided to 2% p.a. (previously 1.5%), giving us increased confidence in the validity of our existing 5p 2017e dividend forecast – an improbably high implied 2017e dividend yield of 8%. We expect a material upward share price correction to deal with that!
We regard the underlying performance as broadly “in line” with a better mix than anticipated. The Q4 2015 Underlying PBT of £1.8bn was 2% below our own £1.8bn forecast. Technically, this is an 8% miss against company-compiled consensus of £1.9bn, but that number looks somewhat “stale”, and can be ignored in our view. Against our forecasts, we see Q4 2015 revenues of £4.3bn (+5% QoQ) as a £100m (2%) beat, offset by misses of £76m (3%) on costs and £67m (41%) on impairments, hence the small £43m (2%) miss in U/L PBT.
Of much greater significance for the share price outlook is, we think, the transition from capital build to capital return. Lloyds thinks its £16bn cumulative PPI provision will be sufficient, albeit we still assume a further c.£1bn charge. However, Lloyds has “corrected” its peculiar 30% medium-term tax guidance to 27%, and this enhances expected capital build. It is a ‘low/no growth’ bank but, in our view, offers a very high and clearly visible capital return story.
Buy rec reaffirmed. Detailed forecasts and 78p TP are placed under review."

Thanks for that Harry.

Presumably HMG as a shareholder get the divi and the special divi? Win, win for them it seems, if so.

They always win Harry :-)

Taking the 2.75p divi off the 73.6p the gvnt need to break even, if GO chooses to go that way he could call 70.85p the net cost and start selling the last 9% very soon.
Guess he hasn't thought of that LOL

Can't find any mention of the divi date.....anyone have any info?

7th April - Financial Calendar

Ah, thanks.......which is nicely after the end of the tax year and comes under the new divi rules.

Exane BNP Paribas today reaffirms its underperform investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and set its price target at 70p.

Worth watching for an entry / top up point?

Jefferies International today reaffirms its buy investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and raised its price target to 108p (from 101p).

Bought a few yesterday.

TP 95-100. with increasing yield.

Your HYPOCRISY never fails to amaze me Freddy Boy! Day after day you rant on about Capitalism and here you are buying a bank. I won't tell Jezza if you don't!

Deutsche Bank today reaffirms its buy investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and cut its price target to 82p (from 83p).

Lloyds Banking's path to 90p

1st qtr IMS tomorrow. Hoping for no surprises...only nice ones :-)

Interim Management Statement

HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2016

Robust financial performance with stable underlying profit and strong underlying returns
· Underlying profit of £2.1 billion with an underlying return on required equity of 13.8 per cent
· Positive operating jaws of 1 per cent achieved with lower operating costs offset by marginally lower income
· Credit quality remains strong with a 6 per cent reduction in impairment and an asset quality ratio of 14 basis points
· Statutory profit before tax of £0.7 billion after the expected £0.8 billion charge relating to Enhanced Capital Notes (ECNs) which were redeemed in the period
· Strong balance sheet maintained with a CET1 ratio of 13.0 per cent (pre dividend accrual), after 0.4 per cent impact of ECNs
· Tangible net assets per share increased to 55.2 pence (31 December 2015: 52.3 pence), driven by underlying profit and reserve movements

Our differentiated UK focused business model continues to deliver in a challenging operating environment
· Cost discipline and low risk business model providing competitive advantage
· Strong underlying capital generation of c.60 basis points

2016 guidance reaffirmed
· Net interest margin for the year expected to be around 2.70 per cent
· Year-on-year reduction in cost:income ratio targeted
· Asset quality ratio for the year expected to be around 20 basis points
· Expect to generate around 2 per cent of CET1 capital per annum

The market didn't seem to like that.

The market not liking very much about Lloyds recently.
Perhaps the market should be looking towards the great income potential this stock has.

Societe Generale Buy 66.76 98.00 98.00 Reiterates

Barclays Capital Overweight 66.76 95.00 95.00 Reiterates

Deutsche Bank Buy 66.76 82.00 79.00 Retains

JP Morgan Cazenove Overweight 66.76 90.00 90.00 Reiterates