Deutsche Bank Hold 64.77 58.00 68.00 Reiterates

Lloyds shares – Buy, Sell or Hold?

Jefferies International today reaffirms its buy investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and raised its price target to 82p (from 67p).

Media reports recently emerged that high street bank Lloyds (LLOY) is close to choosing Berlin as a European base.

The report claimed the group wants to move to secure market access to the EU after Britain leaves.

More on that HERE

I wonder why?

Final Results

RESULTS FOR THE FULL YEAR

'We have delivered strong financial performance in 2016 as we continue to make good progress against our strategic priorities. Underlying profit was £7.9 billion and statutory profit has more than doubled to £4.2 billion. We continue to improve our customers' experience, simplifying the business whilst growing in targeted areas and in December announced the acquisition of MBNA's prime UK credit card business. Strong capital generation, which is a consequence of our business model, has enabled us to fully cover the expected capital impact of the MBNA acquisition, increase our ordinary dividend by 13 per cent and pay a special dividend. As a simple, low risk, UK focused bank we are committed and well positioned to help Britain prosper and become the best bank for customers and shareholders.'
António Horta-Osório
Group Chief Executive
Good underlying performance with strong improvement in statutory profit
· Underlying profit of £7.9 billion (2015: £8.1 billion); underlying RoRE of 13.2 per cent and RoTE of 14.1 per cent
· Total income of £17.5 billion (2015: £17.6 billion)
- Net interest income of £11.4 billion (2015: £11.5 billion) with improved margin of 2.71 per cent
- Other income at £6.1 billion, up in the fourth quarter but slightly lower (1 per cent) than in 2015 (£6.2 billion)
· Operating costs 3 per cent lower at £8.1 billion. Market-leading cost:income ratio improved to 48.7 per cent with positive operating jaws
· Asset quality remains strong with no deterioration in underlying portfolio. Asset quality ratio of 15 basis points
· Conduct charges of £2.1 billion include £1.0 billion provision for PPI taken in the third quarter
· Statutory profit before tax of £4.2 billion, more than double the £1.6 billion statutory profit in 2015

Strong balance sheet and capital generation
· Strong balance sheet with a pro forma common equity tier 1 (CET1) ratio of 13.8 per cent (31 December 2015: 13.0 per cent) after dividends; 14.9 per cent pre dividend. Prudently retaining c.80 basis points of capital for the announced MBNA acquisition
· CET1 capital generation of c.190 basis points, pre dividend, ahead of guidance due to underlying performance and lower risk-weighted assets
· PRA Buffer reduced reflecting de-risking of the balance sheet. The Group will continue to target a CET1 ratio of c.13 per cent given expected future regulatory capital developments
· Leverage ratio on a pro forma basis increased to 5.0 per cent (30 September 2016: 4.8 per cent; 31 December 2015: 4.8 per cent)
· Tangible net assets per share of 54.8 pence (30 September 2016: 54.9 pence; 31 December 2015: 52.3 pence)

Our differentiated UK focused business model continues to deliver for customers and shareholders
· Cost discipline and low risk business model providing competitive advantage
· Good progress in improving products and propositions to better meet customers' evolving needs and preferences
· Helping Britain prosper through continued support to SMEs, first-time buyers and growth in consumer finance
· Acquisition of MBNA prime UK credit card business will support strategic goal to grow in consumer finance; expected to deliver strong financial returns and create significant shareholder value
· UK government continues to reduce its shareholding through trading plan, with stake now below 5 per cent

Guidance reflects confidence in the Group's future prospects
· Net interest margin for 2017 expected to be greater than 2.70 per cent (before impact of MBNA)
· Asset quality ratio for the full year 2017 expected to be around 25 basis points (before impact of MBNA)
· Continue to target a cost:income ratio of around 45 per cent exiting 2019, with reductions every year
· Now expect RoRE of between 12.0 and 13.5 per cent and RoTE of between 13.5 and 15.0 per cent in 2019
· Group now expects to generate 170−200 basis points of CET1 capital per annum, pre dividend

Increased ordinary dividend and payment of special dividend
· The Board has recommended a final ordinary dividend of 1.7 pence per share, making a total ordinary dividend of 2.55 pence per share, an increase of 13 per cent on 2015 and in line with our progressive and sustainable ordinary dividend policy
· In addition, the Board has recommended a special dividend of 0.5 pence per share


more.....

Full marks to António Horta-Osório for turning this bank around. He seems to have kept a low profile and steadily pursued his strategy, even though the PPi saga is still dragging on the cash reserves. Am glad I chose this one as an investment and not RBS.

A touch at 70p.

Gov gone below 4% all done after hours looking at it .

LLOYDS BANKING GROUP PLC - BLOCK LISTING OF SHARES
Application has been made to the UK Listing Authority and the London Stock Exchange for a block listing of 110,000,000 ordinary shares of 10p each in Lloyds Banking Group plc (the "Company"), compromising 85,000,000 shares for the Lloyds Banking Group Long-Term Incentive Plan 2006 and 25,000,000 shares for the Lloyds Banking Group Share Incentive Plan (together the "Plans"). These shares will be allotted to trade on the London Stock Exchange and be admitted to the Official List upon allotment pursuant to the Company's obligations under the Plans. Participants in these Plans will become entitled to these shares following the vesting of share awards or the exercise of share options in accordance with the relevant Plan rules. These shares will rank equally with the existing issued ordinary shares of the Company. Admission of the shares is expected on 24 February 2017.

Macquarie today reaffirms its outperform investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and raised its price target to 80p (from 75p).

JP Morgan Cazenove today reaffirms its overweight investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and raised its price target to 80p (from 75p)

GS as contrarian as ever!

23 Feb Beaufort Securities Buy 70.74 - 80.00 Retains

23 Feb Goldman Sachs Sell 70.74 60.00 60.00 Reiterates

Share dilution alert?

They form part of the staff incentive plan - so hopefully will be held long(er) term?

Harrycat, do you know where do these shares come from, are they like QE and going to dilute further the stock?