Llyods Banking Group (LYG)

[winston]

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Lloyds Banking Group PLC (NYSE: LYG) was part of the Financial Sector that was hurt the worst from the Brexit.

The company primarily provides banking and financial services in the UK.

Shares of Lloyds closed down 23.5% at $3.32, with a consensus analyst price target of $4.94 and a 52-week trading range of $3.17 to $5.57.

Source: 24/7 Wall St.

[winston]

vested

Lloyds’s increasing dividend payments have helped its shares outperform those of Barclays Plc and Royal Bank of Scotland Plc in the past year.

The 0.85 pence-per-share interim dividend announced on Thursday will bring total dividends paid in 2016 to 2.04 billion pounds, almost double the 1.12 billion-pound dividends paid out in 2015.

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Lloyds to Cut 3,000 Jobs in Expense Push After Brexit Vote
by Richard Partington

Shares drop on capital warning, dividend disapppointment
Bank’s first-half underlying profit topped analyst estimates

Lloyds’s increasing dividend payments have helped its shares outperform those of Barclays Plc and Royal Bank of Scotland Plc in the past year.

The 0.85 pence-per-share interim dividend announced on Thursday, will bring total dividends paid in 2016 to 2.04 billion pounds, almost double the 1.12 billion-pound dividends paid out in 2015.

Lloyds had 74,117 employees at the end of June, down almost 1,200 from the end of last year.

The bank will also spend 300 million pounds to cut about 30 percent of its non-branch real estate portfolio to help save about 100 million pounds in one-time savings and 100 million pounds of annual expenses.

First-half net income more than doubled to 1.86 billion pounds, as the company had lower provisions for conduct issues.

The bank did set aside 345 million pounds in the second quarter for such matters, and said the Financial Conduct Authority informed it in May that the regulator was probing the bank’s handling of delinquent mortgages.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... rexit-vote

[winston]

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Black Horse Or Black Sheep? Why I Would Keep Selling Lloyds Banking Group

by Royston Wild

An extra 3,000 jobs are to be eliminated by the end of 2017, the firm said, and another 200 branches are to be put to the sword.

This will save the bank an additional £400m, Lloyds estimates.

The bank is already being pressured by an extended period of low interest rates. And Lloyds’ profitability is set to take a further hefty whack should the Bank of England, as is widely expected, cut the benchmark rate to fresh lows at its August meeting to support the ailing economy.

Broker consensus now suggests that the bank will suffer earnings dips of 14% and 10% in 2016 and 2017 respectively.

The likelihood of prolonged revenues weakness — allied with a possible return of huge PPI-related bills as a proposed 2018 claims deadline looms into view — makes the bank a very unattractive pick at present.

Source: Forbes

http://www.forbes.com/sites/roystonwild ... ca79770404

[winston]

Blue-Chip Stocks to Sell: Lloyds Banking (LYG)

Lloyds Banking Group PLC (ADR) (NYSE:LYG) is the legendary financial house based in London that insured the most unique things — a food critic’s taste buds, Betty Grable’s legs, a cricketer’s mustache and even the voices of Bruce Springsteen, Bob Dylan and Rod Stewart.

But LYC gets most of its money from its international banking sector, not its insurance group.

Suffice it to say, LYC has seen better days in the banking world. First there was a commodities scandal years back that crippled the firm in Asia. And more recently, the Brexit vote has completely destabilized the banking sector in the U.K.

The market hates uncertainty and there are few things that are more uncertain than how the U.K. and the rest of the European Union are going to sort out Brexit. This, and the fact that the British pound has been hammered in the process, has led to 33% selloff in LYG in the past 12 months.

And the near future is not bright.

Source: Investor Place