Latest news with #Lloyds
Times
6 hours ago
- Business
- Times
I helped save Lloyd's of London. The personal touch keeps it alive
S ir Charles Roxburgh is sitting at a magnificent mahogany desk when he points out a stain. It is proof that this otherwise glistening piece of furniture is in everyday use at Lloyd's of London. Indeed, he reminisces that he had a seat at this table 30 years ago, when he was part of the team drawing up the rescue plan that has ensured the 300-year-old insurance market is still functioning today. At the time he was working for the management consultancy McKinsey, but since May he has enjoyed something of a homecoming as the chairman of Lloyd's, which is known around the world for insuring almost anything — ships, oilrigs and even concerts, such as the ones Taylor Swift had to abandon in Vienna last year in the face of security threats.
Times
14 hours ago
- Business
- Times
Lloyd's delays John Neal's AIG start over competition fears
Lloyd's of London has blocked its former chief executive John Neal from starting his new job at American insurance giant AIG until December, to avoid concerns about competition and confidentiality. Neal resigned from the insurance market in January, after six years as chief executive, to take up a role at Aon, the professional services and insurance firm. But last week, the insurance industry was stunned when it was announced he would instead join AIG. Neal worked his notice at Lloyd's until May and was due to start his new role at Aon in September. However, he will not join AIG until December. It is thought that the change in the start date relates to the fact that Lloyd's, as an insurance market, regards AIG, an underwriter, as a closer competitor than Aon, which is a broker. It is not clear whether Neal will be paid during this additional period. His salary was £770,000 before bonuses. He and Lloyd's declined to comment. Lloyd's traces its roots back to the Edward Lloyd coffee shop in London in 1688 and has evolved from insuring ships to a wide range of potential risks, from cyber to satellite launches. According to AIG, Neal will have offices in both London and New York and will join as president, running general insurance. He has known Peter Zaffino, AIG's chairman and chief executive, for more than 20 years. In an email to staff, according to a source, Zaffino described Neal 'as one of the most accomplished executives in our industry'. AIG launched a syndicate at Lloyd's earlier this year. At Aon, Neal was to have become global chief executive of reinsurance and global chairman of climate solutions. Its chief executive, Greg Case, said he wished Neal 'great success' and that Aon looked 'forward to working with him at AIG'. At Lloyd's, he has been replaced by insider Patrick Tiernan.
Yahoo
21 hours ago
- Business
- Yahoo
Here's where the Lloyds share price would be trading if it was a US bank
The Lloyds (LSE:LLOY) share price has jumped 42% in 2025. And it now trades at multiples which were hard to imagine during the Silicon Valley Bank fiasco and the Credit Suisse collapse. However, the shares still trade far below where they could be if they enjoyed the valuation typical of US banks. Based on 2025 projections, Lloyds should deliver statutory earnings per share of 6.68p. Its current share price is sitting at 78.05p. This puts the company's prospective price-to-earnings (P/E) multiple at 11.4 times. That's a material discount to the present US banking sector average of 14.6 times earnings. It's worth mentioning that even across the Atlantic, the US banking sector's P/E ratio is trading above its own recent history, with a three-year average closer to 11.6 times. The same pattern emerges on other metrics. For 2025, Lloyds's price-to-sales ratio is 2.35 times, notably below the US average at 3 times. This persistent gap stems from the reality that US banks are often more diversified, more profitable, and more easily attract higher investor demand, reflecting a deeper, more liquid market and greater perceived resilience. As such, If Lloyds were to trade on the same P/E multiple as US banks, its share price would look very different. At a 14.6 times multiple, those forecast earnings of 6.68p would imply a fair price of 97.5p. In other words, if Lloyds enjoyed the valuation premium of its American peers, its shares would be trading at a level roughly 25% higher than today. This stark difference highlights just how much UK banks have been left behind in the market's risk and reward calculus. Lloyds still has a lot to offer Looking beyond where Lloyds trades today, its growth profile looks increasingly attractive. Based on consensus forecasts from the company's latest data, earnings per share should rise substantially in the years ahead, reaching 9.11p in 2026 and 11p in 2027. At the same time, Lloyds is expected to continue increasing its dividends. Forecasts point to an increase from 3.43p in 2025 to 4.12p in 2026 and 4.7p in 2027. The corresponding dividend yield, based on current prices, climbs from 4.5% in 2025 to an impressive 6.15% by 2027. The payout ratio is expected to steadily improve as Lloyds's earnings expand. However, all considered, I'd suggest it's trading in line with UK peers. The bottom line Several factors are likely to support these earnings improvements. As the group unwinds its structural hedge, Lloyds should be able to capture higher yields on its assets, which, when combined with its consistent cost discipline, should feed through to bigger shareholder returns. Earnings should also improve as money set aside for impairment charges appears to be geared toward the near term. Even so, the bank's singular focus on the UK market remains a risk. If domestic conditions deteriorate or the consumer comes under pressure, Lloyds's forecasts could quickly come under strain. However, despite my concerns about the country's economic leaders, I think Lloyds should continue to perform well in the medium term. It's a core part of my portfolio, and I believe it deserves broader consideration. The post Here's where the Lloyds share price would be trading if it was a US bank appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
In 12 months, a £10,000 investment in Lloyds shares could become…
High street bank Lloyds (LSE:LLOY) remains one of the FTSE 100's strongest performing shares so far in 2025. Up 42% in the year to date, the Black Horse Bank has swept higher on hopes for interest rate cuts and the subsequent boost this would give the UK economy. The lower the Bank of England base rate, the higher company revenues can potentially climb and the lower the risk from loan impairments. That's the theory at least. But interest rate cuts are a double-edged sword for retail banks. They trim net interest margins (NIMs), a key gauge of profitability that measures the difference between the loan interest banks receive and the amount they pay out to savers. So what are City analysts predicting for the Lloyds share price? And what could a £10,000 lump sum in the Footsie share become a year from now? A total 11.5% return? Today, a total of 17 brokers currently have ratings on the bank, providing a good breadth of opinions. Not all of them are bullish on its share price prospects for the next year, but the consensus is positive, suggesting a 7.1% increase from current levels of 78.2p. If the City's dividend projections also come to pass, buyers of Lloyds shares today could enjoy a strong double-digit return over the next 12 months. Right now the dividend yield here is a FTSE 100-beating 4.4%. This all implies someone investing a £10,000 lump sum today would have made £11,500. That's based on a total annual return of 11.5%. I'm not so sure However, analyst projections often miss the mark. And I have a suspicion that while the bank's dividend forecasts look secure, its share price estimates will fall well short of the forecasts. It's not just because of the impact that more interest rate cuts may have on profits, either. Incidentally, Lloyds' NIMs were already thin in the first quarter, at 3.03%. I'm concerned that revenues and the level of bad loans will disappoint even as the Bank of England gears up for more policy loosening. This reflects the weak state of the British economy, as latest labour data this week underlined. Latest Office for National Statistics (ONS) data showed unemployment hit four-year highs, while job vacancies have continuously fallen since mid-2022. The biggest blow to the bank's share price, however, could be an adverse ruling this month on the motor finance mis-selling saga. RBC estimates Lloyds could face penalties of £4.6bn if the Supreme Court rules 'secret' commissions between lenders and retailers illegal. The bank has set aside just £1.2bn to cover possible costs. A FTSE share to consider avoiding Having said all this, I'm not suggesting the bank's outlook is completely gloomy. Lloyds' share price could rise as its digital transformation plan bears fruit, bringing cost benefits and boosting its competitiveness. It might also increase if it expands its share buyback programme, supported by its strong balance sheet. But on balance, the risks of owning Lloyds shares are too considerable for my liking. I think investors should consider buying other blue-chip shares instead. The post In 12 months, a £10,000 investment in Lloyds shares could become… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
BBC News
a day ago
- Sport
- BBC News
Cycling tour to return to Milton Keynes after 17-year break
Part of the 2025 route for Britain's biggest professional cycle race has been Keynes and Central Bedfordshire will host the third stage of the Lloyds Tour of Britain Men on Thursday, 4 will start at Midsummer Boulevard in Milton Keynes, marking its return to the city for the first time since 2008, and finish on Woburn Street in Ampthill. Relaunched in 2004 after a five-year absence, the event is held annually across six stages in September. Milton Keynes City Council cabinet member for sport Mick Legg said: "We're excited to welcome the Lloyds Tour of Britain back to our city and it promises to be a fantastic celebration for all our cycling enthusiasts." This year will be the first time that the Lloyds Tour of Britain has come to Ampthill and Central of the council Adam Zerny said: "We hope it will be a thrilling day for all residents and visitors alike and are looking forward to welcoming the riders and celebrating this world-class sporting event with our communities."The detailed route of the Milton Keynes to Ampthill stage will be published later in July. The race begins in East Suffolk on Tuesday, 2 September, with an opening leg between Woodbridge and Southwold, followed by a second stage at announcements about the host venues of the remaining stages, as well as the participating teams for the Lloyds Tour of Britain, will be made over the coming largest free-to-attend sporting spectacle in the UK features Olympic, world and Tour de France champions, and attracts a roadside audience of over one million spectators. Follow Beds, Herts and Bucks news on BBC Sounds, Facebook, Instagram and X.
