LLoyd Banking Group plc & RBS share

Fuzzythinking

Hi

I have noticed that both bank reported that they are now generating profit. I understand their share price are very low and no dividend at this stage. Will the share of RBS and Lloyd will increase and the dividened will resume again?

When will the government sell the share? Are they selling to everyone and shareholder at a discount price or what?

Regards

Fuzzythinking

sabretoothtigger

I dont think they are allowed to issues dividends. Lloyds did try to for a while but EU rules that any company helped so much by government has received artificial help and its anti competition rules mean EU forces owners to suffer some negatives. RBS is being forced to sell assets

Also its not over yet, profits are hypothetical. 1 good year doesnt cure all ills

The share price is not very low, its diluted. They'll be no discount as government is in debt and they will not sell (completely) for many years as there are no suitable cash rich buyers

opinions4u

sabretoothtigger wrote: »

RBS is being forced to sell assets

So are LBG.

Paddy_Boy

EU rules state that lloyds cannot resume divivend payments untill 2012 as a result of recieving state aid!

One opinion is lloyds raised much more capital than required in recent rights issue and therefore come 2012 will be sitting on a rather large chunk of cash that they should be able to distribute to shareholders.

The other is that Lloyds relience on wholesale funding is too great. Which is fine while inter bank lending is remains in place. However with potential withdrawl of state funding and the uncertanty over house prices( a fall would hit the combined Lloyds TSB/Halifax big style) there is a feeling that it is not out of the woods and has only remained so this year with the stability of house prices, also once QE gets withdrawn there will be much more serious questions to be asked, as the quality of the loan book inherited from Hbos is not that wonderfull.

sabretoothtigger

opinions4u wrote: »

So are LBG.

I'd not heard of them having to sell anything. They just dont want to be split up, that'd make lloyds takeover a complete failure pretty much


Lloyds is still short of the money to stay self sufficient, I dont think there is any excess capital to give away when they have so much short term funding expiring with still long term liabilities


http://www.ft.com/cms/s/0/351dc320-c0f0-11df-99c4-00144feab49a.html

opinions4u

sabretoothtigger wrote: »

I'd not heard of them having to sell anything. They just dont want to be split up, that'd make lloyds takeover a complete failure pretty much

Branches: All of LTSB Scotland. A quarter of the LTSB network in England and Wales. The whole of the C&G network (but not the name or head office site).

Direct provider: IF

Brand name: TSB

The irony is that they will have more of HBOS retail than LTSB retail once the disposals are made.

cashbackproblems

If your looking for a good bank stock which pays dividends (tho nothing like previous levels), has alot of upside over 1-2 years and is the safest out of the lot, look at Barclays.

Paddy_Boy

If your looking for a good bank stock which pays dividends (tho nothing like previous levels), has alot of upside over 1-2 years and is the safest out of the lot, look at Barclays

I would agree that there is good potential with the stock, however I would not agree that it is the safest lof the lot! There proffit's are heavily reliable on BarCap , their retail operations have not been a success revenue wise for the past few years. There is so much up in the air about regulation that I think it could be interesting few years for Barclay's share's, they could offload the retail operations and concentrate on the investment /wealth side however i think the intention is to try to grow the whole combined" Global Banking Model".

Going back to Lloyds, I just think it will just be dependant on the UK economy as there whole buissness model is domestic orientated that they would be more heavily affected by our misfortune than most.

Surely the safest of the lot would be HSBC or Standard Chartered, they needed no state help over past few years and were able to go to the market's to raise funds?

cashbackproblems

Paddy_Boy wrote: »

I would agree that there is good potential with the stock, however I would not agree that it is the safest lof the lot! There proffit's are heavily reliable on BarCap , their retail operations have not been a success revenue wise for the past few years. There is so much up in the air about regulation that I think it could be interesting few years for Barclay's share's, they could offload the retail operations and concentrate on the investment /wealth side however i think the intention is to try to grow the whole combined" Global Banking Model".

Going back to Lloyds, I just think it will just be dependant on the UK economy as there whole buissness model is domestic orientated that they would be more heavily affected by our misfortune than most.

Surely the safest of the lot would be HSBC or Standard Chartered, they needed no state help over past few years and were able to go to the market's to raise funds?

I agree but i dont think hsbc, SC or Santander have as much growth potential in sp like barclays do but without doubt they would be good buys and pay excellent dividends.

ses6jwg

There was talk of a Tell Sid type campaign to those on low incomes but seemed to died a death

sabretoothtigger

Barclays isnt cheap, they do have sub prime hence and need more funding to service it. HSBC has been in decline for 4 years, not sure why


http://www.telegraph.co.uk/finance/markets/marketreport/8005404/Market-report-HSBC-could-double-dividend-say-analysts.html