Upcoming AWS Coverage on Banco Latinoamericano de Comercio Exterior Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 18, 2017 / Active Wall St. blog coverage looks at the headline from Lloyds Banking Group PLC (NYSE: LYG) ("the Group") as the Company announced on May 17, 2017, that the UK government has sold its last remaining shares in the Group. This step enables the financial institution to become a fully privately owned organization. Register with us now for your free membership and blog access at:
One of Lloyds Banking's competitors within the Foreign Money Center Banks space, Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX), reported on April 21, 2017, its results for Q1 2017 ended March 31, 2017. AWS will be initiating a research report on Banco Latinoamericano de Comercio Exterior in the coming days.
Today, AWS is promoting its blog coverage on LYG; touching on BLX. Get all of our free blog coverage and more by clicking on the link below:
Sharing his views on the matter, António Horta-Osório, Chief Executive of Lloyds Banking Group said:
"Today the Government has sold its last shares in Lloyds Banking Group, receiving more money than was originally invested. Six years ago, we inherited a business that was in a very fragile financial condition. Thanks to the hard work of everyone at Lloyds, we've turned the Group around. But the job is not done. We're going to continue to use our strong position to Help Britain Prosper."
Turnaround of Lloyds Banking Group and recent Achievements
The credit for the turnaround goes to Antonio Horta-Osorio, the CEO of the Group. His strategies and persistent efforts have enabled the Group to gain its financial strength and profitability. The Group has over the last few years focused on cutting costs, strengthening its balance sheet, reducing its international exposure and risk, selling off unviable business units, etc. It started paying dividends to its stakeholders from FY14.
Following the Bank of England's 2016 stress testing of the UK banking system, Lloyds Banking emerged as one of the best performing banks in UK. For FY16, the CET1 ratio of the Group was 13.8% (post dividend). CET1 is a measure of bank solvency that gauges a bank's capital strength.
The Group has reduced its reliance on wholesale funding and in FY16 its wholesale funding stood at £111 billion. It has also simplified its business strategy by focusing on local business and presently 97% of its business is now in the UK.
The Group emerged as the most profitable bank in UK for the period from 2012 and 2016. The Group has paid a dividend of over £5 billion to its shareholders.
UK Financial Investments Limited (UKFI) manages the UK Government's shareholding in the Royal Bank of Scotland and the Group. UKFI was formed in 2008 to manage Government's shareholding in banks, which it had acquired as a part of the bailout package given to the banks due to the financial crisis following the collapse of Lehman Brothers. As a part of the bailout, UK Government had invested over £20.3 billion and acquired 43% stake in the Group. The Group had reported a loss of over £25 billion in 2008 as Lloyds TSB took over Britain's biggest lender, HBOS for £12 billion.
Since 2013, the government has been slowly reducing its stake by selling off the shares in the Group. UKFI had announced in October 2016 that UK Government's Treasury would sell the shares of Group over a period of 12 months as per a pre-arranged trading plan. As per the plan, the stake sale was expected to be completed before October 06, 2017. UKFI had roped in the services of Morgan Stanley & Co. International PLC for this purpose. At the time of announcement, UK Treasury owned approximately 6.5 billion ordinary shares, or approximately 9.1% stake in the Group.
By the start of FY17, the UK Government owned only 5% stake in the Group. The last remaining 0.25% stake, or 638,437,059 shares, was sold off by the UK Government early investment of £20.3 billion from stake sale in the Group.
After the UK Government's exit from the Group, the Royal Bank of Scotland remains the only bank with 73% stake still owned by the government and has still to emerge from the setback and make a recovery.
At the closing bell, on Wednesday, May 17, 2017, the stock closed the trading session at $3.76, slightly climbing 0.53% from its previous closing price of $3.74. A total volume of 8.79 million shares have exchanged hands, which was higher than the 3-month average volume of 7.72 million shares. Lloyds Banking's stock price gained 15.69% in the last month, 9.30% in the past three months, and 23.28% in the previous six months. Moreover, the stock surged 21.29% since the start of the year. The Company's shares are trading at a PE ratio of 21.36 and have a dividend yield of 2.39%. At Wednesday's closing price, the stock's net capitalization stands at $66.88 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street