Lloyd's bank share buy back commences...

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  • Tom99
    Tom99 Posts: 5,371 Forumite
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    bowlhead99 wrote: »
    For a potentially lower risk investment there is always their preference shares (the ones with 9.25% nominal dividends paid in May and November (LLPC) have a yield a little over 6% and would be seen as more defensive, albeit without the same capital growth potential. Though if/when interest rates rise they would be expected to fall from their highish price to improve the yield.

    [FONT=Verdana, sans-serif]Out of interest how do you assess the risk of that sort of preference share? Its a good yield compared with cash but:

    [/FONT]
    • [FONT=Verdana, sans-serif]The value may go down as interest rates go up?[/FONT]
    • [FONT=Verdana, sans-serif]Are Lloyds guaranteed to make each payment or are there circumstances when they need not pay?[/FONT]
    • [FONT=Verdana, sans-serif]Is there a risk of Lloyds buying back at par?[/FONT]
    • [FONT=Verdana, sans-serif]How does the risk/return compare with say a Lloyds corporate bond, say the 9.625% 04/04/23 which has a running yield of 7.3% and a GRY of 2.8%?[/FONT]
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    The buyback scheme has been completed.

    1,577,908,423 shares 'worth' one billion pounds.
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
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    veryintrigued wrote: »
    The buyback scheme has been completed.

    1,577,908,423 shares 'worth' one billion pounds.

    They got a decent price I think!
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    dealer_wins wrote: »
    They got a decent price I think!

    Lately especially - tens of millions bought for around 60p.
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    Sounds as if another buy back is on the cards?

    Look to find out more within the results this week?
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    edited 20 February 2019 at 8:31AM
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    veryintrigued wrote: »
    Sounds as if another buy back is on the cards?

    Look to find out more within the results this week?

    From this morning results:

    Total ordinary dividend of 3.21 pence per share, up 5 per cent on 2017, and a proposed share buyback of up to £1.75 billion representing a total capital return of up to £4.0 billion (2017: £3.2 billion ), increase of up to 26 per cent

    To put that's into context, last year's buyback was £1 billion
  • maxie014
    maxie014 Posts: 190 Forumite
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    Hope it goes better than standard life aberdeens share buyback.
    Between that and the merger the share price has halfed.
  • Reaper
    Reaper Posts: 7,283 Forumite
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    bowlhead99 wrote: »
    Some people are cynical about buybacks
    I'm one of those people. All too often they are used to artificially boost the Earnings Per Share figure and/or make more money for already overpaid executives. I also feel it is often a sign of a lack of ideas with what to do with spare cash. Businesses ought to be investing money and making a return on it. That's what they do.

    Occasionally it serves a purpose such as when the share price is temporarily undervalued, but that's pretty rare IMO.

    There's a few pros and cons here if people want to read more
    https://www.investopedia.com/articles/stocks/10/share-buybacks.asp
  • StevieJ
    StevieJ Posts: 20,174 Forumite
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    Reaper wrote: »
    I'm one of those people. All too often they are used to artificially boost the Earnings Per Share figure and/or make more money for already overpaid executives. I also feel it is often a sign of a lack of ideas with what to do with spare cash. Businesses ought to be investing money and making a return on it. That's what they do.

    Occasionally it serves a purpose such as when the share price is temporarily undervalued, but that's pretty rare IMO.

    There's a few pros and cons here if people want to read more
    https://www.investopedia.com/articles/stocks/10/share-buybacks.asp


    You mean like the current/recent Lloyds share price?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    1 March 2019



    LLOYDS BANKING GROUP COMMENCES SHARE BUYBACK PROGRAMME

    Lloyds Banking Group plc (the 'Company') is today launching a share buy-back programme to repurchase up to £1.75 billion of ordinary shares, as previously announced on 20 February 2019.



    The Company has entered into agreements with Morgan Stanley & Co. International plc and UBS AG, London Branch (the 'Joint Brokers') to conduct the share buyback programme on its behalf and to make trading decisions under the programme independently of the Company. Under the terms of the programme, the maximum consideration is £1.75 billion . The programme will commence on 1 March 2019 and will end no later than 31 December 2019. The sole purpose of the programme is to reduce the ordinary share capital of the Company.



    The Joint Brokers will purchase the Company's ordinary shares as principal and sell them on to the Company in accordance with the terms of their engagement. The Company intends to cancel the shares it purchases through the programme.



    Any purchases of ordinary shares by the Company in relation to this announcement will be made in accordance with certain pre-set parameters set out in the terms of each Joint Broker's engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company's annual general meeting held on 24 May 2018 (which permits the Company to purchase no more than 7,219,629,615 of the Company's ordinary shares), the EU Market Abuse Regulation (596/2014), the Commission Delegated Regulation (2016/1052) and Chapter 12 of the Financial Conduct Authority's Listing Rules.



    For the avoidance of doubt, no repurchases will be made in the United States or in respect of the Company's American Depositary Receipts.



    References in this announcement to EU regulation shall be deemed to be to the equivalent laws of the United Kingdom if the United Kingdom is no longer part of the EU.



    - END -
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