At the top of the channel now @ 64.31p.

Yeah, but that doesn't matter 'cos your channel continues up to infinity!!?

And beyond Harry, and beyond :-)

LLOYDS BANKING GROUP TO ACQUIRE MBNA LTD FROM BANK OF AMERICA

Lloyds Banking Group ('the Group') today announces that it has agreed to acquire MBNA Ltd (MBNA), a UK consumer credit card business, from FIA Jersey Holdings Limited, a wholly owned subsidiary of Bank of America. The transaction is consistent with the Group's stated strategic ambitions of growing in Consumer Finance and will enable the Group to enhance its position and offering within the UK prime credit card market.

The acquired MBNA business, which comprises gross assets of c.£7bn, is expected to deliver strong financial returns and create significant value for shareholders. The transaction is expected to complete by the end of the first half of 2017, subject to the receipt of competition and regulatory approval, and is expected to deliver:
· an underlying Return on Investment that exceeds Cost of Equity in the first full year and increases to c.17% in the second full year following the acquisition
· c.3% and c.5% statutory EPS accretion in the first and second full years following the acquisition
The transaction will deliver a £650m per annum (c.4%) increase to Group revenues and will enhance Group net interest margin by c.10bps per annum. There is also significant opportunity for cost synergies, currently expected at c.£100m run rate per annum within 2 years, representing c.30% of the 2015 MBNA cost base.

In the first half of 2016 the gross assets acquired delivered post-tax profits of £123m(1) and are being acquired for cash consideration of £1.9bn. The purchase price includes c.£0.8bn of acquired equity and assumes £240m for future PPI claims, with the Group's exposure to PPI liability capped at this amount.

MBNA is a UK credit card business with a high quality customer base founded upon sound underwriting principles and credit management, which aligns well with the Group's strategy to deliver sustainable growth through a multi-brand strategy. The MBNA brand will be maintained as a challenger brand further enhancing our customer offering. MBNA's diversified distribution model, along with its data analytics capability, digital strength and well-recognised brand, will be complementary to the Group's existing capabilities and provides further opportunities for growth and delivering excellent customer service. On completion of the transaction, the Group's market share in credit cards will increase from c.15% to c.26%.

The transaction is being funded through organic capital generation and is currently expected to utilise approximately 80 basis points of Common Equity Tier 1 (CET1) capital, which through this acquisition will further enhance future earnings and capital generation.

(1) post-tax profit of £166m for the full year 2015.


The Group continues to deliver strong underlying and statutory performance with strong capital generation. As a result the Group remains confident in delivering a progressive and sustainable ordinary dividend in 2016 and continues to target a payout ratio of at least 50 per cent of sustainable earnings over the medium term. In line with our policy, the Group's approach to surplus capital distribution at the end of the year will give due consideration to the Board's view of the current level of capital required to meet regulatory requirements, cover uncertainties and grow the business, which will include the capital impact of this transaction.

Commenting on the transaction, António Horta-Osório, Group Chief Executive, said:
"The acquisition, funded through strong internal capital generation, increases our participation in the expanding UK credit card market with a multi-brand strategy and advances our strategic aim to deliver sustainable growth as a UK focused retail and commercial bank. The MBNA brand and portfolio are a good fit with our existing card business and we will focus on providing its customers with excellent service and value. Our low cost to income ratio and proven integration capabilities will deliver significant synergies and value to our shareholders."

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Barclays Capital today upgrades its investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) to overweight (from equal weight) and raised its price target to 75p (from 55p).

Nice!

That's a start........

Her Majesty's Treasury < 6%

Exane BNP Paribas Underperform 65.52 57.00 57.00 Reiterates

I wish the so called experts would make their minds up! :o)

:-)

Bang! :o)

The biggest shareholder in Lloyds is now Blackrock, the world's largest asset manager.

Not sure if that is a good or bad thing!

I think £1 by Christmas is fair value! :o)

I was shooting the experts by the way, not the messenger! :o))

Macquarie today reaffirms its outperform investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and set its price target at 75p.