|Bid||30.34 x 0|
|Ask||30.36 x 0|
|Day's range||29.25 - 30.51|
|52-week range||0.30 - 73.66|
|Beta (5Y monthly)||1.09|
|PE ratio (TTM)||13.24|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||16 Apr 2020|
|1y target est||75.37|
(Bloomberg Opinion) -- Plans for a change of leadership at two of Britain’s major banks could hardly be better timed. The economic shock of the pandemic, plus the uncertainty around Brexit, will probably demand a strategic reset at both Lloyds Banking Group Plc and Barclays Plc.Lloyds, the U.K.’s biggest mortgage lender, this week said Chief Executive Officer Antonio Horta-Osorio will step down in 2021 once a successor is found. While Barclays says no search is underway, the lender could seek a replacement for CEO Jes Staley as soon as next year and recently reached out to potential candidates, Bloomberg News reported.Just before markets turned in response to the spread of Covid-19, Lloyds’s stock price was roughly unchanged from its level when Horta-Osorio started in 2011, while Barclays’s shares were down nearly 25% under Staley. Both stocks have fallen sharply in the crisis this year, with the less diversified Lloyds the worst hit. They languish close to lows last seen during the financial and euro-zone debt crises, and trade at discounts to peers.In February, Barclays said Staley was being investigated by the U.K. regulator over how he characterized his relationship with deceased financier and sex offender Jeffrey Epstein. The board unanimously backed him after concluding Staley had been sufficiently transparent with the company. But questions around Barclays’s strategy have been mounting. Staley staked his success on maintaining a sizable securities unit that could compete with Wall Street peers. Among the handful of European firms that still aspire to run global investment banks, Barclays has the advantage of owning an established U.S. franchise through the Lehman Brothers business it acquired during the financial crisis.The approach has rightly attracted opposition. Activist Edward Bramson has been pushing for a retreat from trading given its relatively poor returns. Barclays’s U.K. commercial lending business posted a return on tangible equity of around 18% last year, compared with 8% at the investment bank. At the group level, ROTE stood at 9%.True, a trading surge in the first quarter of 2020 helped the securities unit post better returns than the U.K. business, which had to book provisions for loan losses. But it’s questionable whether this reversal will last once debt markets return to normal activity levels and volatility subsides.Barclays probably needs to dial back, be more selective in investment banking (as are BNP Paribas SA and Deutsche Bank AG) and look elsewhere for growth. Investors would likely reward a less volatile firm with a higher valuation, strengthening the shares as an acquisition currency. Buying a cheaper peer could go some way towards diluting the risk of the investment bank. That opportunity may however not present itself.In the meantime, a further pruning of U.K. retail branches (more than half are within a 10-minute drive of each other, according to analysts at UBS Group AG) and improving cross-selling in the consumer bank look like sensible and available options. All told, that could be enough to re-energize the strategy.As for Lloyds, after almost a decade on the job, Horta-Osorio is one of the longest-serving CEOs in European banking of his time. Having exited state ownership by repairing the balance sheet and becoming more efficient (the cost-income ratio is the envy of European peers) Lloyds is now wrestling with a margin squeeze in the cut-throat home-loans market. It is also exposed to prolonged U.K. economic weakness and any negative impact from Britain leaving the European Union.Horta-Osorio’s successor has little room for maneuver. Overseas expansion would be highly risky. That leaves pushing for further growth in wealth management and insurance, as is reportedly already envisaged. Aside from two dominant players, the U.K. market for financial advice is fragmented with one-third of advisers working for firms with fewer than five professionals. That’s an obvious target for a bank with many affluent account holders on its books.Despite the historically generous pay packets, running big lenders is not an enviable job. A candidate with a choice might find it easier to make a decisive break with the past at Barclays than at Lloyds.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Monument is targeting clients worth between £250,000 and £5m, putting it in competition against the likes of HSBC and Barclays.
The Lloyds Bank share price is too cheap for such a solid business, says Roland Head. He believes the shares promise attractive long-term gains.The post Is the Lloyds share price too cheap to ignore? appeared first on The Motley Fool UK.
The Lloyds Bank share price can be impacted significantly by developments in the group. Investors would be advised to look out for them.The post The Lloyds Bank share price may react big to this news. Here’s what I think it means for investors appeared first on The Motley Fool UK.
The Lloyds share price (LON: LLOY) has fallen nearly 50% this year, and hasn't shown any sign of recovery yet. Here's why I'd buy Lloyds shares today.The post At 31p, I think the Lloyds share price is surely a buy now appeared first on The Motley Fool UK.
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Horta-Osório's successor will need to push Lloyds further into wealth management and online services while finding a way to increase profits in an era of almost zero interest rates, analysts said. A Lloyds spokesman said a search for a successor that would include both internal and external candidates would begin imminently, adding that Horta-Osório, 56, had given the company no indication of what he planned to do next. Goodbody analyst John Cronin said Horta-Osório could take the top job at Spain's Santander <SAN.MC> or Unicredit <CRDI.MI>, especially if the Italian bank's boss Jean-Pierre Mustier were to switch to Lloyds.
The 2020 stock market crash has thrown up some great bargains in the FTSE 100. But are Lloyds shares among the best of them?The post Are Lloyds shares the best stock market crash bargain to buy now? appeared first on The Motley Fool UK.
The Lloyds share price is near historic lows. So should wise investors jump on board to make large capital gains? Or swerve it all together?The post The Lloyds share price drops to 30p. Here’s what I’d do now appeared first on The Motley Fool UK.
The Lloyds Banking (LON:LLOY) share price has risen by 4.64% over the past month and it’s currently trading at 30.98. For investors considering whether to buy,...
The Lloyds share price could be a bargain right now for an investor willing to wait for a potential 8% dividend yield.The post Is the Lloyds share price a bargain for FTSE 100 income investors? appeared first on The Motley Fool UK.
Just 9,300 new mortgages were approved across the UK in May, as the COVID-19 pandemic pushed the housing market to near standstill.
With dividends disappearing, I think these three shares could come back stronger once conditions return to a more normal state. The post These shares have cut their dividends but I think they could come back stronger appeared first on The Motley Fool UK.
Investors need to prepare for another stock market crash. Why? It could give them another chance to buy some top bargains, says Royston Wild.The post A second stock market crash could be coming! This is what I’d do now appeared first on The Motley Fool UK.
The Lloyds Bank share price has picked up in the past few days, but the HSBC share price hasn't. Yet HSBC can be a good long-term bet. Here’s why. The post Forget the Lloyds Bank share price! Here’s why I think the HSBC share price is a better bargain appeared first on The Motley Fool UK.
Zopa has been granted a full banking licence with no restrictions, allowing it to launch its fixed savings account and credit card to the public later this year.
Could the Lloyds share price end up costing investors like you a fortune? In this article I explain why the answer could be 'YES.'The post Stock market crash: 3 reasons why I'll ignore the Lloyds share price for my ISA! appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- British firms are being shamed into acknowledging their links to the slave trade, and showing they are serious about combating racial inequality. Imagine how much greater these efforts might be if there was systematic pressure on the corporate sector to come clean about its history and make society fairer.This week U.K. pubs group Greene King said it was inexcusable that one of its founders profited from slavery. It promised a “substantial investment” to benefit Black, Asian and minority communities, both through its businesses and working with charity partners. The move came after the Daily Telegraph newspaper highlighted the involvement of various U.K. company founders and former directors in slavery, using data from University College London’s Centre for the Study of the Legacies of British Slave-ownership.Lloyd’s of London, one of the institutions that was named, said it was sorry for the role it played in the slave trade of the 18th and 19th centuries — “an appalling and shameful period of English history, as well as our own.” It also promised financial support for charities and organizations promoting opportunity for Black and other minority groups, though no amount was specified. The Bank of England said that while it was never directly involved in the slave trade itself, it apologized for “some inexcusable connections involving former Governors and Directors.”A pattern is emerging. When they are forced, companies and institutions reveal a far more complicated version of themselves than the one typically portrayed in their marketing. How have they got away with it for so long? It has taken the global outrage at the killing of George Floyd to bring these issues to the fore.If a company was found to have misstated its reported numbers, it would face sanctions from investors and regulators. There is an argument here for formally obliging companies to reexamine their past, share the results and use the findings to inform present-day action against racism and in favor of equality and fairness.A simple step would be to make it a regulatory requirement for firms to detail their approach to fairness and equality generally, and racial inclusion specifically, in their annual filings alongside existing governance disclosures around pay and so on. This could include data on minority representation at various levels of a company, and a narrative explanation of a firm’s contributions toward creating a better workplace and society. It would also be the place for the unvarnished historical context.Shareholders could have a so-called advisory vote on these disclosures (as they do, in the U.K. on aspects of pay) — a simple public endorsement, or censure if the information is too thin. The reputational risk involved would be an incentive to take this part of the financial report seriously.Companies cannot be allowed to just update their websites, make a one-off donation to a charity and consider it job done. This requires sustained action. It involves investing in improving the experience of the company’s staff and customers from minority communities. For example, could more money go toward making unconscious bias training compulsory at all levels? Such investment could help identify and eliminate microaggressions — remarks or actions that harm minority groups, which the majority often doesn’t notice. Witness the BOE’s pledge to remove from display any images of former governors and directors who were involved in the slave trade.Yes, some companies do seem to be moving forward along these lines. But many are being shamed into it by being called out on an individual basis. A broader initiative is surely needed. Investors and regulators have the power to hold bosses to account year in, year out for delivering change.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Financial Conduct Authority wants banks and credit card providers to offer payment holidays and interest free overdrafts for another three months.
The chair of the new Business Banking Resolution Service says he is expecting a wave of complaints to arise from the COVID-19 crisis.