Fri, Sep. 25, 7:47 AM
- The government's stake in Lloyds (NYSE:LYG) was whittled down to 8.55B shares as of last Thursday from 9.28B shares one month earlier, according to the bank. That's less than 12% of the lender.
- The government sold amid a continued slide in the stock price to near the 73.84 pence level at which it says it won't unload any shares. The stock today is higher by 1.8% in London action to 75.19.
Tue, Aug. 25, 2:05 PM
- Barclays (BCS +4%) and Lloyds (LYG +3.8%) are turning in strong days after the FTSE posted a 3.1% gain - the S&P is currently up 1.5% - and Investec upgraded both British banks to Buy. Barclays was upgraded from Sell, and Lloyds from Hold.
- Investec's Ian Gordon suggests the upgrades are valuation-driven, rather than motivated by any change in fundamentals. "[W]hile we now see reasonable upside for Barclays, we think RBS offers a stronger capital story, HSBC a higher dividend yield, and One Savings Bank vastly superior growth and returns.”
Fri, Jul. 31, 8:02 AM
Fri, Jul. 31, 5:01 AM
- With forecast-beating earnings underpinning market sentiment, European stocks advanced slightly after a three-day gain, heading for their biggest monthly jump since February.
- Among the European notables this morning: Airbus (OTCPK:EADSY) +3.5% despite a new A400M charge; BNP Paribas (OTC:BNPZY) +3% after beating expectations; CaixaBank (OTCPK:CAIXY) -1.8% after cutting guidance; Lloyds (NYSE:LYG) is little changed; ArcelorMittal (NYSE:MT) +1.8% on keeping forecasts; Carrefour (OTCPK:CRRFY) edged higher after a profit rise; BG Group (OTCQX:BRGYY) up slightly despite a 65% slump in net income.
- Europe: FTSE 100 flat; DAX +0.1%; CAC 40 +0.4%; Euro Stoxx 50 +0.1%.
Wed, Jul. 8, 8:40 AM
- Unveiling the summer budget, U.K. Chancellor Osborne says the government will gradually phase out the bank levy over the next six years, replacing it with a new 8% surcharge on profits. The difference? The new charge applies only to U.K. assets, while the bank levy applied to global balance sheets.
- Osborne may have made the change in response to threats from banks to leave the U.K. because of the levy (which Osborne increased 50% in the last budget).
- The FTSE 350 banking index is higher by 1.6% following the news. Watching with interest: HSBC, RBS, Barclays (NYSE:BCS), Lloyds (NYSE:LYG), Standard Chartered (OTCPK:SCBFF).
Thu, Jul. 2, 5:10 AM
- The U.K. government continues to offload its stake in Lloyds (NYSE:LYG), reducing its holdings to 15.9% as part of a trickle-out process that allows shares to be sold on the open market as long as they can make a profit.
- The news comes just nine days after the U.K.'s stake fell to 16.9%, indicating the government had sold shares worth roughly £600M in just over a week.
- Previously: U.K. cuts Lloyds stake to below 17% (Jun. 23 2015)
Tue, Jun. 23, 3:22 AM
- Britain has cut its stake in Lloyds (NYSE:LYG) to below 17%, taking the total sum recovered by taxpayers to £11.5B ($18.2B).
- "Today's announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back," a Lloyds spokesman said in a statement.
- A retail sale, in addition to shares sold through a trading plan, could enable a full exit in the next year.
Fri, Jun. 19, 11:06 AM
- At stake is a package of (mostly non-performing/defaulted) Irish real estate loans held by Lloyds (NYSE:LYG) with a face value of €4.2B. Initial offers were submitted for theProject Poseidon portfolio - which could go for less than €0.30 on the euro - earlier this month, with Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) facing off to be the lucky buyer, according to Bloomberg.
Fri, Jun. 5, 7:34 AM
- Wrapping up its investigation of Lloyds (NYSE:LYG) handling of Payment Protection Insurance complaints, the U.K. Financial Conduct Authority fines the bank £117M and orders the bank's executive bonus pool cut by £30M.
- "We accept the FCA’s findings and apologize to those customers who were impacted,” Chairman Lord Blackwell said. “Since 2011 the group has made significant progress to strengthen the business. We are trying to get it right for our customers and to rebuild trust."
Mon, Jun. 1, 3:27 AM
- The U.K. government has extended a plan to drip-feed its shares in Lloyds (NYSE:LYG) to institutional investors from the end of June until December 31, allowing the Treasury to sell a further £9B of shares in 2015-16.
- Lloyds was bailed out at a cost of £20B ($30.6B) to taxpayers during the financial crisis, leaving the government holding a 41% stake in the bank. It now owns 18.99% following a series of share sales.
Thu, May 14, 11:35 AM
- The U.K. government has already cut its stake to less than 20% form 41%, and is continuing to unload shares to institutions. A private sale to retail investors could be on tap for later this year.
- "It's possible and would be very desirable," says Lloyds (NYSE:LYG) Chairman Norman Blackwell, when asked if the government could complete its exit in the next 12 months. "Whether the government can achieve that depends on the market conditions."
- Previously: WSJ: U.K. seeks banker to hep sell RBS and Lloyds stakes (May 13)
Wed, May 13, 3:07 PM
- The British government still holds and 80% stake in Royal Bank of Scotland (NYSE:RBS) and a 20% stake in Lloyds (NYSE:LYG). JPMorgan had previously been tapped to advise on the re-privatization, but the U.K. is now putting the business back up for bid (not a totally unexpected move).
- The U.K.'s RBS stake is currently worth more than $50B.
- A slate of 18 banks, including JPMorgan, would be eligible for the advisory job - a pretty sizable one given the government's stake in RBS alone is worth more than $50B.
- Source: WSJ
Tue, May 12, 12:37 PM
- "There would be a massive impact across London if a bank the size of HSBC left," says Davide Serra, founder of hedge fund Algebris, and who has advised the government on its holdings of Lloyds (NYSE:LYG) and RBS. "We are talking 10% of London's GDP, if you factor things like personnel moving."
- What has HSBC along with Standard Chartered (OTCPK:SCBFF) considering pulling their HQ out of the U.K. is the country's bank levy - an annual tax on U.K. banks of 0.21% of assets (foreign banks pay that amount only on their U.K. liabilities). Serra: “The bank levy is totally unsustainable. If the U.K. takes 25% of U.K. banks’ profitability, no bank will want to be domiciled here. It is a total disaster for the U.K.”
- Algebris' long/short equity strategy is ahead 27% YTD, while its credit strategy is up 5.14%. Also among its bank holdings is the equity and credit of Lloyds, and Serra calls CEO Hora Osorio one of the bet bank chiefs in Europe.
Mon, May 11, 3:28 AM
- British Chancellor George Osborne is poised to fast-track a £35B sale of the government's stakes in Royal Bank of Scotland (NYSE:RBS) and Lloyds (NYSE:LYG) after the Conservatives' election victory on Thursday.
- Treasury officials are examining plans for an early disposal - at a loss to the taxpayer - of RBS shares, and a discounted £4B sale of Lloyds stock to the public, the Sunday Times reported.
- The British government currently owns 80% of RBS (which was rescued with a £45B state bailout during the financial crisis) and owns a 21.9% stake in Lloyds, down from a peak of 40% in 2009.
Fri, May 8, 9:16 AM| Fri, May 8, 9:16 AM | 4 Comments
Fri, May 1, 9:13 AM
LYG vs. ETF Alternatives
Lloyds Banking Group PLC provides a wide range of banking and financial services. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision.
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