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Lloyds Bank Full Year Results

Lloyds Banking Group Full year results

After a period of struggle in the banking sector recently, Lloyds Bank full year results release enabled the bank’s share price to shoot upwards of 10% in early trade. The bank made a surprise announcement to their dividend payments and answered some of the pressing questions around the cost of the eye-watering PPI claims scandal and the allocation that Lloyds will put aside.

So what were the results? Why have investors taken to the numbers so strongly?

Our Head Analyst Ravi Lockyer and CSS co-founder Luca Sarri  discuss what the results were and Ravi gives comment on a rough idea for when the Lloyds Share Sale from the government may take place.

What questions were asked?

  1. What are the good points in the FY15 numbers today?.
  2. What targets has Lloyds set itself?
  3. PPI; are we coming to an end of the provisions for PPI?
  4. Special dividend of only 0.5p is a bit mean? What’s your view on the payout
  5. Any lingering concerns over today’s numbers?
  6. What does this mean for the Governments share sale?

Watch the video below

 

 

 

 

 

 

 

 

 

 

Enjoy the discussion and as always if you have any thoughts or questions please ask away in the comments below!

If there were any unfamiliar terms you heard or wanted to brush up on your Financial Jargon glossary in general, check out our financial terms list here: Financial Terms List

Comments

  1. COLINDALERADIOSUTCH says:

    Lloyds Shares – FILLYERBOOTS

  2. George Pinnell says:

    The cost of compensation for PPI mis-payments is staggering; so, just how much profit was derived from selling this type of insurance?

    • Ravi Lockyer says:

      Hi George,

      Good question – it’s impossible to know, as Lloyds PPI liability comprises a mix of liabilities from a number of companies that it bought

      HBOS
      Cheltenham & G
      Lloyds

      Hence the “profit” from selling PPI came from a number of companies that reported it as profit. When Lloyds bought these companies PPI liabilities were created, hence Lloyds did not get any of the profit but had to pick up the liability from companies they had acquired.

      Also depends how many years you go back, if go back to the 90s then it’s particularly tough to calculate.

      What we do know is a £16bn provision has been created which addresses the liability!

      Thanks for your comment.

      R. Lockyer

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