Seeking Alpha

E Nuff Sed » Comments » Single Comment |

  • Lloyds Buys HBOS: Good Deal or Bad? [View article]
    Jeff Cross is correct that UK and US banks are not directly comparable. UK is a oligopolist market, where a few super banks dominate the market. LYG with its strong deposit base will balance out HBOS's exposure to the whole sale market.

    Lloyd's CEO Eric Daniels said that immediately after the deal — which is expected to complete early next year the bank would have core tier 1 capital ratio, the measure most used by analysts for balance sheet strength, of 5.9%. That is marginally below its target of a ratio of between 6% and 7%, and less than the 6.2% it reported at the halfyear stage. At its half-year stage HBOS's core tier 1 ratio was even better at 6.5%.

    LYG is cutting its dividend to preserve capital ratio's but if the UK housing market continues to plummet it may be forced to raise more capital at below book value.
    Sep 27 15:11 pm |Rating: 0 0
All Comments by E Nuff Sed »
Comments by Ticker
AA, AAPL, ABB, ABK, ABT, ABX, ACAS, ACV, ADI, ADM, ADP, ADRE, ADVNA, ADVNB, ADVS, AES, AFL, AFN, AGN, AGNC, AGQ, AGU, AIG, ALGT, AMD, AMGN, AMZN, AN, ANH, APA, APEI, ARDNA, ARO, ARST, ATPWF.PK, AVP, AXP, AZN, AZO, BA, BAC, BAM, BAX, BBBY, BBT, BBVA, BBY, BC, BCR, BDX,
E Nuff Sed's
Comments Stats
555 comments
Rating: 137 (638 - 501 )