Proactiveinvestors United Kingdom Lloyds Banking Group https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Lloyds Banking Group RSS feed en Mon, 27 May 2019 04:49:56 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190524170236_14087546/ Fri, 24 May 2019 17:02:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190524170236_14087546/ <![CDATA[News - Lloyds bosses summoned by MPs to explain 'greedy' pensions policy ]]> https://www.proactiveinvestors.co.uk/companies/news/220943/lloyds-bosses-summoned-by-mps-to-explain--greedy--pensions-policy-220943.html Lloyds Banking Group PLC (LON:LLOY) chief executive Antonio Horta-Osório has been summoned to parliament to explain why he received a vastly better pension deal than all other staff at the lender.

Amid vocal investor discontent over corporate pay and pensions at various companies in recent weeks, Horta-Osório and renumeration committee chair Stuart Sinclair have been asked to appear in front of the Work and Pensions Select Committee before the summer recess in July.

READ: Lloyds in hot water as CEO the only employee to receive final salary pension

The Spaniard has been rewarded with a pension contribution rate of 33% of his base salary, and two other executives have contribution rates of 25%, while other rank and file employees are limited to a contribution rate of 13%.

Frank Field, the chair of the Work and Pensions committee, and Rachel Reeves, chair of the Business Energy and Industrial Strategy committee wrote to Lloyds this month to seek an explanation for the divergence.

Lloyds changed its executive pension pay policy earlier this month, including cutting Horta-Osório’s contribution rate from an even higher 46%, following the release of new board pay recommendations from the Investment Association (IA). The IA has pledged to flag up companies paying unfair pension contribution rates to its institutional shareholder clients.

READ: Lloyds accused of boundless greed

But Field still has accused the bank of “feverish desperation and boundless greed” for its efforts to persuade staff to back the pension changes at this month’s annual shareholder meeting.

“The bank’s remuneration committee churning out a litany of excuses only further erodes what little dignity is left in these proceedings. Senior executives at Lloyds could bring this sorry episode to an end, today: just give it up,” he said.

Reeves added: “Rather than setting challenging long-term targets for CEOs, pay committees are prone to gaming the system, designing ever more complicated pay packages to handsomely reward their executives.

“Setting CEO pay becomes an expensive version of whack-a-mole where pay committees, for appearance-sake at least, hammer down on one element, such as base salary, only to allow other parts, such as pension entitlement, to pop up to reward their executives.”

At Lloyds’ AGM, investors seemed less bothered, with only 8% of votes going against the remuneration committee.

In afternoon trading, shares in the bank were up 1.2% at 58.52p.

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Fri, 24 May 2019 14:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220943/lloyds-bosses-summoned-by-mps-to-explain--greedy--pensions-policy-220943.html
<![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190524133005_14087256/ Fri, 24 May 2019 13:30:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190524133005_14087256/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523172401_14085868/ Thu, 23 May 2019 17:24:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523172401_14085868/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523113043_14085333/ Thu, 23 May 2019 11:30:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523113043_14085333/ <![CDATA[RNS press release - Redemption Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523094636_14085106/ Thu, 23 May 2019 09:46:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190523094636_14085106/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190522171729_14084158/ Wed, 22 May 2019 17:17:29 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190522171729_14084158/ <![CDATA[News - BofA Merrill Lynch expects Lloyds to see £2.0bn revenue headwind from competition in mortgage market ]]> https://www.proactiveinvestors.co.uk/companies/news/220779/bofa-merrill-lynch-expects-lloyds-to-see-20bn-revenue-headwind-from-competition-in-mortgage-market-220779.html BofA Merrill Lynch expects Lloyds Banking Group PLC (LON:LLOY) to see a £2.0bn revenue headwind as it tries to manage the trade-off between growing its mortgage volumes and sustaining its net interest margin in the face of increased competition and a lack of UK interest rate rises.

In a note to clients following results on Tuesday from Lloyds’ rival Nationwide Building Society, analysts at the US bank pointed out that at £9.6bn of gross mortgage lending in the first quarter of 2019, Nationwide's 14.5% share of the market was "well ahead" of Lloyds's at 13.1%, despite the former being much smaller.

READ: Nationwide anticipates further squeeze on margins from competitive mortgage market

The BofA ML analysts said: “This is no flash in the pan, with Nationwide's share of new business above its stock for three consecutive quarters.”

They added: "Future new business volumes will likely reflect pricing but Nationwide intends to stay competitive and consequently expects the current pace of margin decline to continue."

The analysts pointed out: "Lloyds is likely to continue trying to mitigate the margin pressure but its weak 1Q19 lending highlights mortgage borrowers' price sensitivity.

"We estimate that this results in a £2bn income headwind 2018-21E that is hard to fully offset with growth in other parts of the balance sheet."

BofA ML reiterated and ‘underperform’ rating on Lloyds’ shares with a target price of 55p. In late morning trading, Lloyds shares were 1% lower at 59.89p.

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Wed, 22 May 2019 12:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220779/bofa-merrill-lynch-expects-lloyds-to-see-20bn-revenue-headwind-from-competition-in-mortgage-market-220779.html
<![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521165646_14082451/ Tue, 21 May 2019 16:56:46 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521165646_14082451/ <![CDATA[RNS press release - Form 8.3 - WYG plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521124501_14082119/ Tue, 21 May 2019 12:45:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521124501_14082119/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521113001_14081957/ Tue, 21 May 2019 11:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190521113001_14081957/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190520172527_14080742/ Mon, 20 May 2019 17:25:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190520172527_14080742/ <![CDATA[News - Lloyds to employ 500 staff for new digital hub in Edinburgh ]]> https://www.proactiveinvestors.co.uk/companies/news/220585/lloyds-to-employ-500-staff-for-new-digital-hub-in-edinburgh-220585.html Lloyds Banking Group PLC (LON:LLOY) has revealed plans to hire 500 high-skilled staff for a new tech hub in Edinburgh.

In response to a shift in consumer behaviour towards digital services, the bank has set up the hub to develop new technology for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.

READ: Lloyds to start paying quarterly dividends from 2020 as shareholders approve pension policy

Lloyds has started recruiting data scientists and software engineers to work at the digital hub.

The new hub, which will be based at the Scottish Widows headquarters, is part of the £3bn investment the lender announced last year to improve its digital offering.

Lloyds and other high street banks have been closing branches and spending money to upgrade their technology as more customers switch to online banking.

Last year, Lloyds earmarked more than 60 branches for closure.

Philip Grant, chairman of Lloyds’ Scottish executive committee, said: “People's expectations are rising rapidly as they want the same experience they're used to with established digital brands.

"In our tech labs, we are designing what customers will need in the future, making products and services that can adapt to their lives and making it easier for them to connect with their finances."

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Mon, 20 May 2019 08:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220585/lloyds-to-employ-500-staff-for-new-digital-hub-in-edinburgh-220585.html
<![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190517170243_14079105/ Fri, 17 May 2019 17:02:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190517170243_14079105/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516170537_14077442/ Thu, 16 May 2019 17:05:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516170537_14077442/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516143617_14077212/ Thu, 16 May 2019 14:36:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516143617_14077212/ <![CDATA[News - Lloyds to start paying quarterly dividends from 2020 as shareholders approve pension policy ]]> https://www.proactiveinvestors.co.uk/companies/news/220393/lloyds-to-start-paying-quarterly-dividends-from-2020-as-shareholders-approve-pension-policy-220393.html Lloyds Banking Group PLC (LON:LLOY) said on Thursday it will pay quarterly dividends from the first quarter of 2020 to provide shareholders with more regular returns.

The lender, which currently pays two dividends a year, will adopt three equal interim ordinary dividend payments for the first three quarters of the year followed by a larger dividend in the fourth quarter. The payouts will depend on performance.

READ: MPs urge Lloyds shareholders to vote against pay policy at Thursday’s AGM

Last year Lloyds distributed about £4bn to investors, including a total ordinary dividend of 3.21p per share, up 5% on 2017. It plans to return £1.75bn to shareholders through a share buy-back this year.

Lloyds said the changes to its dividend policy would not impact the current buy-back programme or any decisions for future buybacks.

The bank made the announcement ahead of its annual general meeting on Thursday afternoon when 91.95% of shareholders approved its remuneration policy despite calls from MPs to vote against it due to the gap between pensions paid to executives and employees.

Several senior MPs have accused the group’s bosses of “boundless greed” for failing to give up pension perks that are far better than those offered to regular workers.

Lloyds’ chief executive Antonio Horta-Osario took home a pay package worth more than £6mln last year, which included a pension contribution from the bank equal to 46% of his base salary.

Earlier this year, Lloyds said Horta-Osario had voluntarily agreed to bring that figure down to 33% in 2019 but that is still far greater than the 13% maximum contribution offered to other employees.

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Thu, 16 May 2019 08:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220393/lloyds-to-start-paying-quarterly-dividends-from-2020-as-shareholders-approve-pension-policy-220393.html
<![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516070006_14075853/ Thu, 16 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516070006_14075853/ <![CDATA[RNS press release - Intention to Pay Quarterly Dividends ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516070005_14075842/ Thu, 16 May 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190516070005_14075842/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190515174156_14075620/ Wed, 15 May 2019 17:41:56 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190515174156_14075620/ <![CDATA[News - MPs urge Lloyds shareholders to vote against pay policy at Thursday’s AGM ]]> https://www.proactiveinvestors.co.uk/companies/news/220339/mps-urge-lloyds-shareholders-to-vote-against-pay-policy-at-thursdays-agm-220339.html Several senior MPs have accused Lloyds Banking Group PLC (LON:LLOY) bosses of “boundless greed” for failing to give up pension perks that are far better than those offered to regular workers.

Lloyds’ chief executive Antonio Horta-Osario took home a pay package worth more than £6mln last year, which included a pension contribution from the bank equal to 46% of his base salary.

READ: Lloyds post flat profit as it takes hit for ending Standard Life Aberdeen contract early

Earlier this year, Lloyds said Horta-Osario had voluntarily agreed to bring that figure down to 33% in 2019.

But that is still far greater than the 13% maximum contribution offered to other employees, which has prompted anger from UK politicians.

“Senior executives at Lloyds could bring this sorry episode to an end, today: just give it up,” said Frank Field, the head of parliament’s work and pensions and business committees.

The Birkenhead MP added that attempts by the lender to win backing from employees who also hold its stock “smacks of feverish desperation”.

Labour MP Rachel Reeves has called on investors to vote against Lloyds’ pay policy at tomorrow’s (Thursday) annual general meeting.

In response to the politicians, the head of Lloyds’ remuneration committee Stuart Sinclair, said the pension allowance cut for this year was an “important step” and that the remuneration policy would be reviewed ahead of next year’s AGM.

Lloyds shares were slightly lower at 60.6p in late-afternoon trading in London.

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Wed, 15 May 2019 15:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220339/mps-urge-lloyds-shareholders-to-vote-against-pay-policy-at-thursdays-agm-220339.html
<![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190514172950_14073907/ Tue, 14 May 2019 17:29:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190514172950_14073907/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190514140001_14073595/ Tue, 14 May 2019 14:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190514140001_14073595/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190513170754_14072177/ Mon, 13 May 2019 17:07:54 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190513170754_14072177/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190510170241_14070431/ Fri, 10 May 2019 17:02:41 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190510170241_14070431/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190509170309_14068815/ Thu, 09 May 2019 17:03:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190509170309_14068815/ <![CDATA[News - UK’s top 40 companies gain momentum at start of 2019 as profits sink for the rest ]]> https://www.proactiveinvestors.co.uk/companies/news/219994/uks-top-40-companies-gain-momentum-at-start-of-2019-as-profits-sink-for-the-rest-219994.html The gulf between the UK’s top 40 companies and the rest of the country’s corporates has widened as profit trajectories for both sides diverged in the first quarter of 2019.

In the latest Profit Watch data from The Share Centre, which analyses results reported in the first quarter of the year, the UK’s 40 biggest firms saw profits rise by 11% overall, helped by a recent spate of strong performances in several blue-chip companies.

For example, Royal Bank of Scotland Group PLC (LON:RBS) swung to its first pre-tax profit in a decade in the fourth quarter of 2018 while Lloyds Banking Group PLC (LON:LLOY) and HSBC Holdings PLC (LON:HSBA) have both reported higher full year earnings.

READ: Lloyds sees 2018 profits miss forecasts after a weak fourth-quarter but still hikes dividend, launches share buyback

The strong performances helped push profits in the banking sector to £27.7bn last year, their highest level since 2007.

Meanwhile, the oil sector, which includes FTSE 100 supermajors Royal Dutch Shell PLC (LON:RDSA) and BP PLC (LON:BP.), has seen pre-tax profits rise by two-thirds, with mining giants Rio Tinto PLC (LON:RIO) and BHP Group PLC (LON:BHP) also helping to push earnings in their industry up by 18% after reporting profit growth in their latest full year and half year results respectively.

By contrast, firms outside the top segment have struggled, with overall profits in the first quarter tumbling nearly 18%.

The data also showed that nearly half of the companies outside the top 40 reported a fall in profit in the period compared to only a quarter of the largest firms.

A strong performance by heavyweights pushed overall pre-tax profits from UK companies to their tenth successive quarter of growth, although it slowed to 4.4% year-on-year from double-digit growth in recent quarters.

The impressive performance from the top 40 also doesn’t seem to have been reflected in the wider economy, with 11 out of the 20 sectors seeing falling profits with asset managers, industrials and retailers among the biggest losers.

The retail sector in particular has seen the last 12 months marred by a series of high profile collapses including House of Fraser and Debenhams as well as some near-misses from Mothercare PLC (LON:MTC) and Carpetright PLC (LON:CPR) as market trends continue to undermine the high street.

And it seems the slowdown is set to continue, with The Share Centre showing that market analysts have lowered their estimates for median earnings growth over 2018/19 to 4% from 6.7% nine months ago, while profits are expected to grow by 8.3% compared to 9.6% previously.

Dividends provide solace in the gloom

While the data may be painting a fairly bleak picture for the UK’s corporates (except the top 40 of course), investors could yet find reasons to be cheerful.

Despite the decline in profits for most companies, around £767bn worth of dividends have been generated since 2009, while yields remain at historic highs.

Richard Stone, chief executive of The Share Centre, said that the fat payouts meant investors were making “good returns on their holdings, even without significant capital growth” and that UK-listed shares appeared to represent “good value both compared to historical levels and to markets elsewhere around the world, implying that bad news and the moderating of expectations is more than priced in”.

In short, it seems that now is the time to be an income investor rather than a day trader.

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Thu, 09 May 2019 15:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219994/uks-top-40-companies-gain-momentum-at-start-of-2019-as-profits-sink-for-the-rest-219994.html
<![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190508173552_14067155/ Wed, 08 May 2019 17:35:52 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190508173552_14067155/ <![CDATA[RNS press release - Additional Listing ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190508083001_14066168/ Wed, 08 May 2019 08:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190508083001_14066168/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190507174847_14065478/ Tue, 07 May 2019 17:48:47 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190507174847_14065478/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190503172251_14063260/ Fri, 03 May 2019 17:22:51 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190503172251_14063260/ <![CDATA[RNS press release - Redemption of 6.3673% preference shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190503121419_14062778/ Fri, 03 May 2019 12:14:19 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190503121419_14062778/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502171102_14061551/ Thu, 02 May 2019 17:11:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502171102_14061551/ <![CDATA[News - 'Cash cow' Lloyds seen climbing the bank dividend rankings ]]> https://www.proactiveinvestors.co.uk/companies/news/219596/-cash-cow--lloyds-seen-climbing-the-bank-dividend-rankings-219596.html Lloyds Banking Group PLC (LON:LLOY) is likely to climb up the dividend table, analysts said after the lender’s trading update on Thursday.

While the FTSE 100 bank’s first quarter saw a flat top line and profit hit by £100m of further PPI charges and £339mln from items including the termination of its deal with Standard Life Aberdeen, there were silver linings to be seen, including prospects for future dividends.

READ: Lloyds posts flat profit as it takes hit for ending Standard Life Aberdeen contract early

Stripping out the one-offs, quarterly underlying profits were up 8% to £2.2bn thanks to lower costs and a £136mln revenue contribution from the new wealth management joint venture with Schroders.

As well as the deadline for PPI claims coming to an end this summer, further good news arrived this week from the banking regulator.

The Bank of England’s Prudential Regulation Authority has “thrown Lloyds a bone”, said Laith Khalaf, senior analyst at Hargreaves Lansdown, by reducing its capital requirements, “which gives the bank a bit more wriggle room, and may increase its propensity to make shareholder payouts this year”.

On present forecasts, Lloyds is in third place in the banking rankings for forecast dividend yields, behind Royal Bank of Scotland (LON:RBS) at the top and HSBC Holdings (LON:HSBA) in second, and ahead of Barclays PLC (LON:BARC) and Standard Chartered PLC (LON:STAN).

The big banks Forward dividend yield Forward P/E ratio Market cap (£bn) RBS 6.04% 8.41 28.88 HSBC 5.99% 11.91 134.37 Lloyds 5.53% 8.07 44.99 Barclays 4.77% 7.17 28.16 StanChart 3.12% 11.38 23.51

But the PRA decision a day before the quarterly update means Lloyds believes it now needs to keep hold of around 13.5% of its cash as a ‘systemic risk buffer’ in the event of another major financial crisis, lower than the previous ratio of 14%.

Analysts at UBS think this increases Lloyds’ 2019 capacity for a special dividend payout by £1bn, or 2.5% of its market cap.

Analyst Gary Greenwood reckoned Lloyds will have a capital surplus at the end of the year of between £1.9bn-£2.4bn, "which would theoretically be available to fund further distributions to shareholders" either by way of share buy-backs or special dividends.

Reflecting on Thursday’s results, Khalaf concluded: “Overall it’s a familiar story for Lloyds – the bank’s put in a solid performance, slightly marred by some one-off items. The share price has performed well so far this year, but even so Brexit continues to dominate sentiment, as Lloyds is indelibly plugged into the domestic economy.

“With a yield well over 5% though, Lloyds still looks like a bit of a cash cow for income-seekers.”

-- Table data via Hargreaves Lansdown --

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Thu, 02 May 2019 14:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219596/-cash-cow--lloyds-seen-climbing-the-bank-dividend-rankings-219596.html
<![CDATA[RNS press release - Publication of Supplementary Prospectus ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502135753_14061279/ Thu, 02 May 2019 13:57:53 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502135753_14061279/ <![CDATA[News - Lloyds posts flat profit as it takes hit for ending Standard Life Aberdeen contract early ]]> https://www.proactiveinvestors.co.uk/companies/news/219538/lloyds-posts-flat-profit-as-it-takes-hit-for-ending-standard-life-aberdeen-contract-early-219538.html Lloyds Banking Group PLC (LON:LLOY) reported flat first-quarter profit as it took a hit for the early termination of an investment management contract with Standard Life Aberdeen PLC (LON:SLA) and an extra provision for payment protection insurance claims.

Statutory profit before tax for the three months to the end of March was broadly unchanged on the prior year at £1.6bn and net income edged up 2% to £4.4bn.

The bank incurred a £339mln charge related to banking volatility and severance costs for pulling £100bn worth of assets from SLA.

In March an arbitral tribunal ruled that Lloyds and its Scottish Widows pension business were not entitled to serve notice last year to end an asset management contract with SLA.

READ: Lloyds not entitled to end £100bn asset management deal with Standard Life Aberdeen, tribunal rules

Lloyds had argued that Standard Life’s merger with Aberdeen Asset Management allowed it to end the contract, which was due to expire in 2022.  

Despite the tribunal ruling, Lloyds said it would push ahead with plans to transfer the assets to Schroders and Blackrock.

The lender also set aside a further £100mln for compensation payments related to PPI misconduct in the quarter. 

Lower operating costs lifts underlying profit 

Operating costs fell by 3% to £1.9bn, driving an 8% rise in underlying profit to £2.2bn. 

Restructuring costs decreased 9% to £126mln due to the completion of the integration of the MBNA credit card business Lloyds bought in May 2017.

The cost to income ratio fell to 44.7% from 47.8% last year. 

The net interest margin – the difference between interest earned on loans and money paid on deposits – dipped to 2.90% from 2.93% last year.

The common equity tier 1 capital ratio fell to 13.9% from 14.1%.

Risk weighted assets edged down 1.4% to £211bn and the return on tangible equity increased to 12.5% from 12.3%.

Lloyds maintained its financial targets for the year, including a net interest margin of 2.9%, capital build of 170 basis points to 200 basis points, operating costs of less than £8bn, a decline in the cost to income ratio and a return on tangible equity of 14-15%.

“While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders,” chief executive Antonio Horta-Osorio.

Lloyds a cash cow for income seekers, says analyst 

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Overall it’s a familiar story for Lloyds – the bank’s put in a solid performance, slightly marred by some one-off items.

"The share price has performed well so far this year, but even so Brexit continues to dominate sentiment, as Lloyds is indelibly plugged into the domestic economy.

"With a yield well over 5% though, Lloyds still looks like a bit of a cash cow for income-seekers."

Shares dipped 0.6% to 63.1p in morning trading. 

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Thu, 02 May 2019 07:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219538/lloyds-posts-flat-profit-as-it-takes-hit-for-ending-standard-life-aberdeen-contract-early-219538.html
<![CDATA[RNS press release - Q1 2019 Interim Management Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502070004_14060197/ Thu, 02 May 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190502070004_14060197/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190501170502_14060023/ Wed, 01 May 2019 17:05:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190501170502_14060023/ <![CDATA[News - Lloyds gets more room for dividends as regulator loosens risk buffer ]]> https://www.proactiveinvestors.co.uk/companies/news/219452/lloyds-gets-more-room-for-dividends-as-regulator-loosens-risk-buffer-219452.html Lloyds Banking Group PLC (LON:LLOY) shares rose on Wednesday, a day ahad of the release of its first-quarter results, as the lender revaled it is likely to have more surplus cash available this year after the banking regulator loosened the purse strings for the lender's ring-fenced bank.

The Bank of England’s Prudential Regulation Authority on Wednesday told Lloyds that it would only need a ‘systemic risk buffer’ of 200 basis points for its ring-fenced bank, which equates to 170 basis points at a group level compared to the 210bps previously guided.

READ: PPI provisions refuse to die for Lloyds, but cash returns make up for profit disappointment

Following the net 30bp reduction in the group's Pillar 2A capital requirement that went into effect from 1 January, the lender believes it now needs to operate with a core tier 1 ratio of around 12.5% with a management buffer of around 1%, equating to a total target of 13.5% compared to the previous CET1 ratio of 14%.

As at 31 December 2018, the group reported a pro-forma core tier 1 ratio of 13.9%, net of the proposed share buy-back of £1.75bn that was announced in February and will be executed during the current financial year.

READ: Lloyds in hot water as CEO the only employee to receive final salary pension

Lloyds, which saw a capital build of 210bps in 2018, said it continues to expect ongoing capital build of 170bps-200bps per year.

Referring to the group’s “progressive and sustainable” ordinary dividend policy, directors, who are expected to face questions about pensions at the group's annual general meeting on 16 May, said they will “continue to give consideration to the distribution of surplus capital at the end of the year”. 

Broker Shore Capital said the reduction in the CET1 ratio requirement means the group started the year with around £0.8bn of pro-forma surplus and with the organic capital build equivalent to a further £3.5bn-£4.1bn, of which dividends would be expected to consume around £2.4bn.

Analyst Gary Greenwood said this would leave a residual capital surplus at the end of the year of between £1.9bn-£2.4bn, "which would theoretically be available to fund further distributions to shareholders" either by way of share buy-backs or special dividends.

“This is comfortably enough to fund our forecast for a further share buyback of £1.5bn in 2020F, although it is possible that the implied one-off release from this announcement could see an uplift to capital return plans in the current financial year.”

In afternoon trading, Lloyds shares were 1.8% higher at 63.67p.

 -- Updates share price -- 

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Wed, 01 May 2019 08:23:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219452/lloyds-gets-more-room-for-dividends-as-regulator-loosens-risk-buffer-219452.html
<![CDATA[RNS press release - Group Announces Revised Capital Guidance ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190501070745_14058520/ Wed, 01 May 2019 07:07:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190501070745_14058520/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190430171327_14058101/ Tue, 30 Apr 2019 17:13:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190430171327_14058101/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190430150001_14057769/ Tue, 30 Apr 2019 15:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190430150001_14057769/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190429174111_14056123/ Mon, 29 Apr 2019 17:41:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190429174111_14056123/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190426171731_14054318/ Fri, 26 Apr 2019 17:17:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190426171731_14054318/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190425172033_14052553/ Thu, 25 Apr 2019 17:20:33 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190425172033_14052553/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190424174811_14050811/ Wed, 24 Apr 2019 17:48:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190424174811_14050811/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190423171050_14049021/ Tue, 23 Apr 2019 17:10:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190423171050_14049021/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190418165934_14047073/ Thu, 18 Apr 2019 16:59:34 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190418165934_14047073/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190417171958_14045304/ Wed, 17 Apr 2019 17:19:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190417171958_14045304/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190416172200_14043632/ Tue, 16 Apr 2019 17:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/2992/LSE20190416172200_14043632/