Opinions Charles Lannon
Lloyds TSB Group PLCLYGBUY ON WEAKNESSJan 28, 2014
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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He sold in 2013/14 because cross selling did not work. They were going to increase returns to shareholders and that did not materialize. As a British bank they are in a better position than a European bank. But he does not want to be a British bank because the American markets have access to your capital. He thinks the outperformance of non-Canadian banks is probably over.
He sold in 2014-5. The bank was working off the bad loan book and releasing capital, and selling off bad loans. They hoping to return their book of business back to growth. Because they'd underwritten most UK mortgages, they hopes that by cross-selling they could grow their share. That didn't work, so he exited.
Lloyds Bank ADS (LYG-N) vs the S&P 500. Lloyds is a British Bank with a strong retail franchise in the US. Probably the S&P 500 could make sense for a retail investor. It is a difficult thing to compare because one is an index and the other is a single stock.
Paul Harris, CFAHe sold his Lloyd’s shares several years ago. He invested with the expectation of some catalysts: that they would expand their business by increasing the number of types of services they provided to each customer and that they would significantly increase their dividend. Neither increased to the extent that he had planned for and he doesn’t see significant catalysts for growth now. (Analysts’ price target is 76p compared to a current stock price of 67 pence).
Doesn’t own any British banks right now. Amongst the analysts, this is probably the favourite because they are getting so much respect for the path they are pursuing, post the forced merger with Halifax. After the run the stock has had in the past year, he would argue that it is discounting future levels of profitability from 2016-2017 and beyond and totally ignoring some of the risks that exist within the company, specifically on the regulatory front. This is probably the safest and most straightforward but you want a price that is a little bit lower than it is right now.